Is valve shrouding a concern in a 318 w/ 2.02 & 1.6 valves

I have done it several times. If done incorrectly, it will lose power over the 1.88 valve.

It also depends on lift. If I get close to .500 lift NET, I lay out the gasket line around the cylinder, then lay out where the valve is. Then you blend OUT to the line and DOWN about .100 or so. Do it for every cylinder.

If you are running some ancient deal with .450 lift you can get by with out the notch. I can tell you, that on a flow bench you can see the difference with the notch. And on the dyno. And in your time slip.