Straight out of the Lycoming Overhaul Manual:
6-137. (0-235-C, 0-290-D.) Set tappet clearance on these models in the following manner:
a. Set tappets on numbers 2 and 4 cylinders at zero clearance. This will load the camshaft on one side.
b. Rotate the crankshaft untill No. 1 piston is at TDC on the compression stroke. Both valves will now be closed. Adjust each for a 0.007 / 0.009 clearance.
c. Following the procedure set forth in step "B" for numbers 3, 2, and 4 in that order.
d. Tappet clearance must be checked after engine run-in. At that time clearance desired is 0.010 inch. However, 0.006 / 0.012 is acceptable.
Kevin