AFR 165 + b-31 cam = NO POWER???

FWIW, On my old 94 I had a B-21 cam (same as B31, but made for 1.7 rockers), stock Edelbrock 60379 heads, and an extrude honed Cobra intake....With 373's, the car had plenty of low rpm power...SAE DynoJet numbers were 286rwhp/309rwtq...and the car went 12.88@108 at 3573#'s and far from a drag strip friendly suspension...

I agree that 1-3/4" headers are too big, and stock intake is choking it, but I believe there are other issues as well...as some highlighted above.
 
Alright, I just took off the valve covers and checked the pushrods. They are the right length. They ride in the middle of the valve stem. A problem that I did find was the rocker adjustment. On their stroke, some of them were too loose, some were too tight, and some were fine. The way I adjusted the rockers was when the exhaust valve just cracked open, I set the intake to 0 lash and then tightened 1/4 turn. I kept cranking the engine until the intake started to open and when it was about 2/3 of the way closed I set the exhaust to 0 lash and tightened 1/4 turn. That is how I was told to do it. If I did it that way, how could things be off now? Also, I noticed that when both valves on cylinder 3 are closed the intake valve is set right but the exhaust has a lot of play. It seems that the plunger is moving in and out when I press on the back of the rocker. Is that supposed to happen?