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I thought that our on site "experts" recommended .004 for intake and .006 for exhaust. Both my Bentley Manual and the John Muir book say .006 for both. My understanding is that looser means more clatter and a SLIGHT reduction in power, but also is a hedge against burned valves. These specs are for a stock engine.
ps. look for writeups
by Larry Jowdy and George Brown on this subject in the Knowledge section
It definitely depends on the individual engine specifications. Pat Downs at CB Performance recommends .002 for his engines, but I've been told to set them to .000 by several people IF you have chromoly pushrods. Interestingly, the method for setting the clearance at .002 that Pat describes sounds exactly like the method for setting it at .000 that I've been told. Go to the CB Performance website to download the engine maintenance tips from Pat Downs for that procedure.
As friend and uber-guru G.N. has explained, start w/ #1 and turn the motor BACKWARDS (using wrench on fan pulley) to get #2, #3, #4, in that order. Looking down on the motor, that will be starting at upper (forward) right, and moving in an orderly way around clockwise. Be sure engine is at either TDC (#1, #3) or BDC (#2, #4) each time. If you jack the back up too much and you might get some oil in your face, but the valves will not know or care. Did we mention to put the trans in neutral? The CB method is to just tighten the set screw 'til the push rod can't be turned by thumb and finger, then back it off just a skoosh (?) until the push rod can be turned easily. Tighten lock nut (don't move anything else) and check again. This for the chromoloy (?) PRs only. "Ordinary" PRs (whatever that means) are 0.004" IN, and 0.006" EX, as described.
Bill:

A lot of good (and sometimes confusing) info here, so let me sum up for you:

A STOCK, 1600cc VW Type 1 engine with stock, aluminum push rods is best set at .004" Intake and .006" exhaust. Going to .004" on BOTH intake and exhaust is often OK, but you have to re-check the valve clearance every 3000 miles to make sure the valves don't get too tight, otherwise you'll be paying for a valve job, especially if the exhaust valves burn - not a good thing. Paraphrasing what Nolan said, "Better to hear valve noise than replace burnt valves"

High-performance and racing engines often have different (chromoly steel) push rods. These push rods act a little differently in high performance engines, and they can tolerate a tighter setting of the valve clearance. Chromoly rods are usually set at .002" (I think Lane alluded to that up above), but they still should be checked every 3000 miles (or whenever you change your oil).

If you don't know what you have for push rods, then no big deal...use a small magnet to just touch the side of the push rods. If it sticks, they are chromoly steel. If it doesn't stick, they are stock aluminum. It's OK to set valves with chromoly rods at .004 (I) and .006 (E). Nothing bad happens, other than a slight increase in valve noise.

Hope this helps....gn
One of the "South Carolina Speedstah Guys",
freezing his valves off in New England
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