So I just put an engine in my new 87 2wd. It's out of a manual with 260,000 miles but was supposed to be running good when pulled. I pulled the heads and replaced them with a better used set, changed the main seal, and freshened up every nut, bolt, and part that's attached to it. 
Today I got it running!
It's run for about a minute. Loud, sounds rough, but does not have a distinct rod hammering. Heck, it's pretty smooth. May have a miss but I'll work that out. 

Anyway, I set the valves to be just touching, as I don't know or expect the lifters to work properly. Anyway, the lifters are seemingly firm, the push rods are in place (I double checked after running it), and it does fire right up. What's next?
Should I properly set the valves to two turns past touching, or keep running it this way until the lifters can better pump up?

I plan to do a compression check tomorrow to see that I've got 4 good cylinders, but expect it to be pretty healthy. 

I'll pull plugs to determine if its running on 3, but I believe I've probably got all 4 and its just a bunch of valve noise I'm hearing. 

-craig