Re: 1996 mercruiser 5.7 with thunderbolt ignition ... Top End knock Please Help
Coopin
If you dont already know, that engine has aftermarket heads on it. I could see in the 1st video above, the S/R cast into the head. Those are "world products" S/R or S/R torque'r heads. You might look into that, not sure if they use a different spark plug or not.
I noticed the rockers are all set to slightly different heights. With those being an aftermarket head Im going to guess they have never had the seats redone on them. So there is no reason for the valve installed heights to be different from one cylinder to another. Also they have screw in studs so its not from the studs pulling out. So in short you need to run ALL of the valves to Zero lash like you did in the video... But you need to add an additional 1/4 or 1/2 turn to them, after the clicking stops. Do them all the same... 1/4 or 1/2
After doing this if you still have different heights, you need to take a look at the cam, might be going flat if its not a roller.
Next thing is... there is usually more oil coming from the rockers while running with the valve cover off. Could be several things there but i would look into that. What kind, weight, of oil are you running. Check the insides of a few of the push rods for build up, the heads look clean but they could be much newer than everything else. A really dirty engine can have low oil delivery to the top end. Could have a really dirty pick up screen.
Oh and by the way, engine needs to be at operating temp when setting the valves. Very important!