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These are mechanical lifters, and the clearance between the tip of the valve and the tip of the rocker arm is critical. It's measured with a feeler gauge, and typically, is on the order of something like 0.010 inches for intake valves, 0.020 inches for exhaust (this is not necessarily the exact value for your engine, this is for a slant-6, but representative of the scale).
So if you see a quarter inch with the pushrod fully down, someone has seriously backed off that adjustment. On the slant-6, the adjustment is made with engine hot and idling, which is difficult, but necessary to get the clearance right, with thermal expansion. On the 318, the gap and the procedure may be different. But you turn the hex nut at the rocker arm clockwise to decrease the gap, and counterclockwise to increase.
With that kind of a gap, the valve isn't opening.
So if you see a quarter inch with the pushrod fully down, someone has seriously backed off that adjustment. On the slant-6, the adjustment is made with engine hot and idling, which is difficult, but necessary to get the clearance right, with thermal expansion. On the 318, the gap and the procedure may be different. But you turn the hex nut at the rocker arm clockwise to decrease the gap, and counterclockwise to increase.
With that kind of a gap, the valve isn't opening.