First and foremost, thank you all for your input regarding my question--I am fairly new when it comes to working on this old Brit bike. Not to beat a dead horse, but from the information I have gathered from everyone's responses is that the tappet should not have contact with the valve when closed. Would that be a correct assumption? Correct If so, I should back them off then slip the feeler gauge in and tighten to the feeler? Yes, but as stated earlier, you don't want it so tight that you cannot get the feeler in and out of there. It should drag a bit when you pull it out and slide it back in. It will become a 'feeling' thing and you will know when it feels right.
On a different note, I was reading about cam size and valve/tappet clearances. From what I gathered the stock engine is .006/.008 and the combat is .008/.010, respectively. However, my cam was replaced when the engine was built (not sure the profile, but it is supposed to be between stock and combat). So should I set it at factory spec, or something else? Not sure how you know it is between them but if that is correct, set them for .007 and .009. And again, as stated before a little loose is better than a little tight.