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You may have to do the adjustments and then turn over a few times and recheck your settings. Pretty easy to get a little off. At least it was for me anyways.

#2 cylinder is closest to the generator head. Are you rotating the engine in the right direction when checking valve action? Facing the engine fan, the correct rotation is clockwise. You want to check the clearances on the compression stroke. The flywheel has three marks that you will get...