Just got into work, and I have to say the drivability difference is shocking. Stop signs I can take off in second now with smooth acceleration (after the slowest of roll-throughs ) and in general there is just way more of that low-end grunt that I am supposed to be feeling. Idle is great now, 750 rpm and smooth as butter. The shifter used to just shake like crazy at idle and now it's rock solid. Definitely seeming like there was a miss down there.
So, I would have to say, to anyone with a 261C that they aren't liking - double check that valve lash and set it at 007/009.
I suppose if I was really motivated I could go back in and set all the valves tight and see if the bad behavior comes back, but, meh, i've got other things to do.
I would be VERY interested in what Ted or Tod has to say about the valve lash!
Gnarls.