LD, you sound like maybe you've been working with modern water-cooled, aluminum block, small bore engines. Some of them run quite well with .0015" cold clearance, but not our Nortons, particulary the ones that are run hard, like Jim's (comnoz). .004" for 750s and .005" for 920s are pretty much the minimum you can get away with for cast pistons in iron Norton cylinders on a race bike. Add another thou or so for forged pistons. Take away a little for alloy cylinders, but not much. Depending on bore size and piston design, you might run a little more, or a little less, but we're talking differences like half a thou here. If you're really easy on the bike, and do a serious break-in, you might get by with a little tighter clearance on the street, but only because you're giving the piston skirts time to callapse down to a clearance that works. With a stock 750 with original cast pistons, you can get by fine with .0035" for a street bike ridden normally. On a race bike, you'd want at least .004" with the same pistons. I was never able to keep a 920 with cast pistons and iron cylinders from seizing at anything under .005", and at that clearance they would end up squeezing the skirts down after a bit of use, until the clearance was more like .0055" - .006".
Ken