I worked off a Selco for several years, and here's some solid advice... Chuck that Seloc/Climers in the garbage and download the Merc manual available online (search some old threads or the "stickies" at the top of the for your year of engine).
If you set the valves 3 times in a row, that will throw off your adjustment, the lifters will be pre-compressed when you went to round 2 and 3... Since you're having issues setting the valves, just do it while the engine is running, messier, but easier.
1- Warm up engine
2- Remove valve cover
3- Start engine
4- Loosen a rocker nut until the rocker clatters
5- sloooowly tighten that rocker nut "just" until it stops ticking
6- tighten that rocker nut 1 full turn more, 1/4 turn at a time, waiting a couple seconds between 1/4 turns to allow the lifter to bleed
7- Go through steps 4->6 on all the other rockers (valves should be quiet now)
8- Reinstall valve cover
9- Clean up oily mess from rockers spitting all over the place
If the valves are noisy before you start adjusting them, identify the noisy ones first and tighten them a bit so you're not hearing a bunch of ticking valves, then run through all the valve lash adjustment.
Sounds like you had the rocker cover off, did you do anything with the lifters, did you remove them from where they were located. If you removed them, did they go back on the exact same cam lobe (hole) they were removed from?... Lifters are broken-in to their specific cam lobe, and can't be swapped around without potential cam damage. If they were mixed up, it's best to get a whole new set of brand new lifters, install them, then run through the cam break-in procedure: upon initial engine startup run the engine for 15-20 minutes at 1500-2000 RPM.