It has hydraulic lifters.
Have you double checked that you replaced the spark plug wires in the correct firing order? I have done this and it's amazing how well a V8 can run with a couple wires crossed.
The engine code came out to a gen v. But not sure if the heads were used from the original motor, since the boat is an '89. The only time that I have adjusted valves the rocker had a screw that you could turn with a lock nut. How would I go about adjusting them? I realize that you say 1 turn or half a turn. But on what? Sorry for my ignorance.
If the engine is a Mark IV, then you do need to adjust the valves, as per^^, but it's 1 turn down, not 1/2... If the engine is a Gen V, then just torque the rocker bolts to 45lb-ft... Not sure if it's a Mark IV and a Gen V? Stamped steel rocker covers=Mark IV... Ali rocker covers=Gen V
I guess it's a Gen V engine? As achris has mentioned. Sorry, don't know the proper procedure for adjusting these valves then?