Hi Team,
it is easy enough to do an in chassis valve grind and lash test as I have done a few at the Dealer back in the day when i was a cheap labor Apprentice.
To check valve lash you need to remove the top manifold cover from the pony engine block and the valves are right there to check.
The clearance is adjusted by grinding some off the end of the valve stem---do not take too much off at a time or you will either need to build up the end of the valve stem or cut some from the seat to get back in range.
The valves and springs are retained by the same circlip method as the old side valve Ford V8's--the same Ford tools for the valve grinding mandrel guide is used to cut the valve seats are used on these as well.

The method is described in the Servicemen's Reference Book in the Starting Engine Section beginning on page 231.
Starting Engine Valve lash is given both here and in the Specifications near the start of the book as both Inlet and Exhaust Cold at 0.007" to 0.010"

While you have the pony heads of you can get in a clean out the water passages in both the heads and the block.
Most times the head gaskets can be reused.


Cheers,
Eddie B.

thank you Eddie for all the time you take to share your wealth of knowledge. I might just give this a rest for a while and start working on the U/C and fixing cracks in the track frame. it needs some help as well guess I will be jacking the old girl up rather than driving it up on blocks. almost all the roles are shot or missing parts of the flanges. some I can move a 1" back forth. I keep telling myself this is still "fun". was hoping to try out my clutch job and see how I did but I guess that will have to wait.

  Little update. I pulled the pony off and started going though it. It’s been bored 20 over with oversized pistols but the ring appear to stick size as I have .063 end gap a lot more then the 12-20 called out. Only one head has block water passages. The cylinder is wore only about .001.002 biggest size I could get is 3.149”.
 

Now for the rest of the story as Pula Harvey used to say. mostly what I forgot to tell you as to why I decided to pull the pony motor. I did a compression test and was getting about 45-50 psi then I did a cylinder leak down test with the motor at TDC and used shop air to pressurize the cylinder to find out where it was leaking from and the only air I could hear was coming out of the crankcase so I new my valves were ok and that I must have stuck rings or lost of wair. well about all I found was a bad end gap on the rings non were stuck.

have you checked the bore for size with a bore gauge and verniers in several places along the bore. a couple of thou is normal. i would say those rings are worn or are the wrong size.
when gaping rings that is done at the right bottom of the bore were the wear is less or damn near zero most engines the piston doesn't travel to the very bottom hence no wear there.

also check for ridges at both ends of the bore you will feel it with a finger tip if there is one a ridge reamer should be used to remove it particularly at the top of the stroke as ring/ring land damage can result.

that valve seat needs a little more attention its still pitted you should be able to see a thin even line all the way round it and the valve when lapped in correctly i was taught to check them with metho or fuel when you with valves facing up you should be able to pour a little metho or fuel into the recess around valve and it shouldnt drain away then you have a proper vapour tight seal i know it doesnt really matter n these old things but its doing it properly.