Motorcycle Repair: shovelhead, valve seals, clearences

Question
I own a 1978 1200 cc shovel, a while ago a friend of mine rebuilt the lower end with  s&s flywheels, rod, and pistons, the heads have new valve seats, valves and guides. I have a electronic ign. and a s&s super E carb, the engine is still a 74 ci. Unfortunatley my friend is no longer around to help me with this problem, the engine has about 1000 mi. on it, it never did sound right from the get go, the lower end did'nt sound tight and the engine still smoked after 1000 mi. I tore the motor down to the lower end and the clearance between the rods and flywheels is .025, is this excessive? Also the cylinders look fine with no scoring or scratches, the pistons are real carboned and the heads are real carboned. the intake valves looked like they leaked oil as i could see oil in the manifold. Should there be valve seals or should the new valves and guides not leak? I am at a stand still because the local harley guys are not to be trusted, could you tighten up the lower end and put seals and lap the valves and how much could this cost? Thanks Scott  

Answer
The clearence for the rods is .005 to .025 so you are ok there. It could be a little closer though, you are on the high side.
If the bike is still smoking after 1000 miles then there is a problem. The pistons and heads will carbonize in the shovels. Yes, valve seals should be installed and that might be your oil problem or there is to much clearence in the guides. If the piston clearence is not right then it will smoke too, even though there is no scoring.
The noise you are hearing can be coming from anywhere at this point, since I dont know what any of the clearences are.
If you are interested in haveing me do the work for you, it would be best to call me at the shop and I can go over with you what the costs are and what needs to be done. It would be easier than typing on here! lol
The shop number is 937-354-3992
Cell number is 740-360-9903
Mike