I didn't preload the lifters, I didn't think I needed to do that.
I'm pretty sure my lifters and flat tappet and not hydraulic so I don't think I had to pre load them
Flat tappet doesn't mean mechanical/solid. It is just a distinction from roller type liters. I am almost 100% sure that you installed a set of hydraulic flat tappet lifters - that is what is included in a Comp Cams 260H Cam Kit.
It's like: flat tappet vs. roller roller tappet and solid lifter vs. hydraulic lifter
Nowadays, virtually all lifters are hydraulic - I haven't seen mechanical lifters since I used to work on my 1958 Morris Minor and 67 VW (and my small engines - lawn mowers, snowblowers etc.)
This is what a mechanical/solid lifter looks like:
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You need to pull your valve covers (and spark plugs - to make it easy to roll the engine while setting the pre-load).
Since you have been running the engine without the proper pre-load, I would strongly suggest you back way off on the adjusting nuts and leave them alone for the night. Doing this will let the lifter plungers come all the way back up in their bores before beginning the pre-load procedure.
I almost hate to ask this but; Did you do a proper break-in of the cam/lifters at the initial start up? Basically it involves starting the engine and immediately bringing it up to 2000+ RPM - and running it at that speed for 30 minutes.
Here is the link to CC's cam installation and break-in procedure:
http://www.compcams.com/Instructions/Files/145.pdf