Toyota Repair: valve adjustment--87, 2wd, 22r, toyota pickup truck, toyota pickup truck, upper radiator hose


Question
FIRST OF ALL , THIS TRUCK HAS A CARB AND IT HAS AROUND 130,000 MILES ON IT.  I RECENTLY REPLACED THE TIMING CHAIN,GEARS, WATER PUMP, OIL PUMP, THERMOSTAT, DISTRIBITOR CAP AND BUTTON, AND DUE TO PREVIOUSLY HAVING COOLANT IN THE OIL, I REPLACED THE HEAD GASKET AND HAD THE HEAD CHECKED AND FACED. I FOUND THAT THE GASKET HAD BLOWN TO THE BACK SIDE OF #4 CYLINDER. WHEN PREVIOULSY CHECKING THE COMPRESSION, IT WAS CONSISTANT BETWEEN ALL CYLINDERS.
--I GOT THE TRUCK STARTED UP AFTER ALL OF THIS BUT IT HAS A SKIP IN IT AND IT ALSO SEEMS TO BE OVER HEATING. MY FIRST QUESTION IS, DO I NEED TO ADJUST THE VALVES AFTER ONLY REMOVING THE HEAD AND REPLACING IT---I DID NOT DISTURB THE CAM OR CAM BEARINGS AT ALL. AND, IF I DO NEED TO ADJUST THE VALVES, DO I NEED TO DO IT WHEN THE ENGINE IS HOT OR COOL. I HAVE ONE BOOK THAT SAYS .008in FOR INTAKE AND .012in FOR EXHAUST AND IT SAYS WHEN HOT. I HAVE ANOTHER BOOK THAT DOES NOT MENTION WHETHER THE ENGINE NEEDS TO BE HOT OR NOT AND GIVES THE SAME CLEARANCES.
-MY SECOND QUESTION RELATES TO THE ENGINE OVERHEATING. WE FILLED IT WITH ONLY WATER FIRST IN CASE WE HAD A LEAK. THE TEMP GAGE WOULD RISE UP HIGH THEN FALL BACK DOWN AS IF THE NEW THERMOSTAT WAS OPENING LATE OR SOMETHING SIMILAR. COULD THIS BE BECAUSE WE HAVE ONLY WATER OR IS THE BLOCK STILL FILLING UP SOME OF THE AREAS THAT WE HAVE DRAINED OR WHAT COULD IT BE.

                                      THANK YOU  

Answer
The valves are adjusted at 8+12 cold.
Not sure what is causing the overheating, it's possible there may be an air pocket and may take some time to get all the air out of the cooling system, try removing the upper radiator hose from the radiator and with the engine cold, pour water directly into the hose, this should get all the air bubbles out, it doesn't make any difference whether you use water or coolant at this point in time, it should not be overheating, finally, I would also have the radiator checked to make sure that it's not clogged internally and the flow is sufficient to cool the engine.