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The tappets being set too tight would be increasing valve lift. When you back off the tappets you are reducing their ability to lift the valve(push down on the valve stem)
Take a deep breath and start over. put the transmission in 5th gear and roll the engine over using the back wheel rolling the bike forward (removing the sparkplugs will make this easier). Note when one of the exhaust (front)rocker arms goes fully down on the valve.
Then adjust the other exhaust valve tappet so it has .003" clearance. Repeat this procedure for the other exhaust valve.

Repeat the procedure for the intake valves. That should do it for you.
I used the T mark Top Dead Center Method. I think I may have set them too loose. I took it around the block and noticed a severe loss in power. I guess the most frustrating part is having to wait overnight for the engine to cool...
 
I used the T mark Top Dead Center Method. I think I may have set them too loose. I took it around the block and noticed a severe loss in power. I guess the most frustrating part is having to wait overnight for the engine to cool...
That's a lot more work than necessary. Its much easier to recognize that when one valve is fully open, its counterpart on the other cylinder will be closed (on the round part of the cam where you want to adjust your clearance) Moreover the round part of the cam is at least 180 degrees of cam revolution so extreme crankshaft positioning precision (as in right on the T mark) is not at all necessary.
 
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I agree with Duckster.. Never have used timing T mark.. observing the lobe which is fully open, exhaust or intake the other cylinder corresponding valve will be fully closed and the one I adjust.. after setting .003" clearance Keeping adjuster from moving while tightening the lock nut can be problematic..
There are tools designed to hold the adjuster while tightening lock nut, in a pinch I have used needle nose locking pliers or you can grind out a 4mm notch in piece of thin metal.. Dremel w/cutting wheel works well for this as seen in image..this set of feelers had a small metal ruler that worked well for this.. one could use the thickest feeler of the set just as easily.. 2 notches at 90º to one another worked best for me..
While not necessary for the Rebel, other bikes like my Suzuki require bending of feeler to obtain good angle for proper measurement.

well set valve clearance will have a tick, tick sound much like a sewing machine..
 

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I would think it would reduce the amount of valve lift by that much....I just started the bike, it ran but ticked even worse than before.... I can't afford to take it to a shop...this sucks...
@projectfineline I just did my first valve adjustment on my '09 about a month ago.
My Lessons Learned: Keep going up in thickness on the feeler gauges through a range of several that go-with-friction to find the first positive No-Go. The last/thickest that was a go with friction is it. the next thicker one should be a no-go.
The first time I tried it I got the same thing you did, the sewing machine sound went from a subtle undertone to a dominant worrisome noise. I had looked for the thinnest gauge with friction and the next thinner one to be a go-with-no-friction. That was wrong.
When I tried the second time, I went through a lot more of the gauges in my set, looking for a positive NO-GO and found I had set them to about .009, way out of spec and explaining the noise. Using the thickest-with-friction and the next thicker gauge being a no-go to set them to .003 and my bike sounded perfect and ran the best.
 
Did the valve adjustment again, got it right.
Now that I know what the ticking of valves sounds like, I'm sad to report it is more of a knocking sound.
Deeper in pitch, more prominent on the left side.
I've seen this brought up in other threads, but no resolution.
I know about the screwdriver stethoscope trick.
I have advanced audio gear, I used a directional microphone and noise canceling headphones (you don't hear anything outside of the headphones while you have them on).
It's coming from the cylinder area (middle), more so, than the valve covers (top) or crank case (bottom)....
I'm sure it's not an exhaust leak, I had that happen, know what it sounds like and fixed it.
 
Why do I keep reading about looking for the "T" in the window. Seems a waste of time. If the square notch on the cam shaft is facing to the rear, you do one cyl.. When it's facing to the front, you adjust the other cyl.. Easier on the knees, less things to remove and it's not like there's another lobe on the cam. If that "T" is not exactly lined up in the window, it's not going to make any diff. in setting the gap. Am I missing something here ? I adj. my valve clearance in a lot shorter time than by a video or book.
 
Trust me when I say do not put a lot of torque on the valve cover bolts. Don't even think about using an air ratchet. My little 20 year old taiwan 1/4" drive air ratchet snapped one right off. They break off flush with the cam carrier where they screw in. Not hard to fix, but when you have broken something on your new bike you feel really bad.
I wish I had read this advice before I tightened the bolts up and had to spend about £150 for parts
 
After reading a few horror stories similar to yours, I bought a torque wrench just for this, so I knew I was applying the correct amount of torque. You aren't the first and doubt you will be the last!
 
Gap is same for all years. The Clymer manual, which isn't nearly as good as the Honda manual, calls for 0.002. The Honda manual gives a range of 0.002 - 0.004. I set mine at 0.004. IIRC, the clearance gets tighter with time so 0.002 is the minimum setting and it's better to set it wider.

See this thread for the easiest way to adjust the valves: Did a Valve Adjustment tonite | Honda Rebel 250 & 450 Forum ZEP's video does it the hard way.

Do not overtighten the valve cover bolts. Snug (7 foot pounds of torque) is all that's needed. Too much and they will snap!
 
I normally adjust to .003 for that reason. I don't like to hear the tappets, but it really doesn't seem to cause any harm to have them at .004. These engines are often described as sounding like a sewing machine for this same reason.
 
@flitecontrol Still hearing some slight ticking after valva adjustment at 0.004. Is this normal. it's audible while riding and even more at idle.
yes it's normal, it's also why solid rocker shaft lifters are often called tappets, because they TAP
Should sound much like an old metal gear sewing machine click clacking away..
 
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