Take all the rockers back to completely loose and start over. Make sure that #1 is at TDC, and go through, one cyl at a time. Set the lifters to 1/4 past 0 lash. Turn the engine 1/4 turn at a time and just follow the firing order.
Once you have all cyls done, turn the motor 1/4 turn at a time and push down on the rockers, you should be able to compress the rocker on the lifter side, but it should not be terribly tight and there should be no slack.
The biggest thing is making sure that you are at TDC for #1 on the compression stroke when you tigthen the rockers and when you install the distributor.
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