do the valves seal completely with 1.7s on stock e7s??

If the valves are hanging open then you need to shim the rockers. What brand and type RR's do you have. You should tighten the bolt/nut while twisting the pushrod with your fingers, when you can no longer easily turn the pushrod (0 lash) it should be 3/4 to 1 1/2 turns to torque spec on pedistal and the same and tighten the nut. This should properly set preload.