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

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?

thanks guys. I realized that when i first adjusted the rockers I made some of them too tight and they weren't closing at higher rpms. The car runs MUCH bettter now.