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What filter did you pull to see valves?
Here is what you do to check valve lash.
Remove the valve cover, just under the int and ex. ports. Turn the piston so it is TDC on the compression stroke. Generally speaking, no more than 0.010 gap and no less than 0.003 on either valve.
You wont find the valve stems inside the case, they are under the breather where you checked th valve lash. Only things in the case are:
Governor gear
Crank
Rod
Piston/rings
Cam
Tappets.
On your L-Head engine the valve lash is adjusted closer by cutting the valve seats, and opened up by grinding the end of the valve stem.
OPn Sprigs OHV engine, he has a large valve cover on top of the engine, he measures valve lash on top of the engine by doing the TDC thing, but he measures between the Valve stem and Rocker arm.
If your valve lash were out, you would have either no compression, or an extreme difficulty pulling the rope.
I pulled the air breather filter to visualize the valve stems ( Intake valve ) I pulled the exhaust to see the exhaust valve stem, there was alot of carbon build up as well on the exhaust stem, i cleaned it as best as i could without tearing into it further, the valve stem on the intake is pitted and so is the exhaust valve stem but not as bad. They appear to seat well but i know even a tiny gap will cause a problem, in the end i just may replace the valves after i get through replacing the coil, points and condenser. Here are some more pics.