As I have never had a slant or drove this car I noticed when she warmed up that if you crack on the gas the revs drop almost instantly, like she dont hold any RPM at all, falls flat on its face when the accelerator is released. Is that normal?
No, that is not normal. It should run like a regular car.
Accelerate when you step on the gas, and return to a lower rpm when you get off the gas without stalling.
As already mentioned you can set the valves cold by adding .002 extra clearance. That's .012 on the intake and .022 on the exhaust. You must rotate the engine so the lifter is on the base circle of the cam. In other words, both valves should be closed on the cylinder you are working on. A quick check is that the pushrod should be loose and able to rotate easily with your fingers.
