I haven`t run into lifter problem like that before, but I have seen lifters where the "foot" of the lifter was so thick that you had to machine the face of the lifter bore so that lifter had clearance . Does Engle not make lifters for their cams ?  I was a Scat cam man and always bought the cam kit that came with lifters. I just don`t recall seening a lifter like yours. Most of the engines that I built were for the street so I didn`t get carried away with extreme mods. My favorite engine for that period was a 1850 stroker . I think it was 88x76, 041 heads W/8 to 1 comp , Scat C-35 cam and the famous Zenith non-progressive 32 Dnix(?) 2 barrel carb. All stuffed into a "B" case( no clearance to do) Slam the deck lid and drove the hound out it for 5 years with zero problems. I love strokers.
    Sorry, I got carried away . Back to your problem. I don`t think your cam lift is excessive. Maybe you could try your original lifters an see if they have clearance and then get a different set of lifters to match or machine your case.
    Like I said before, Its been awhile and there is so much new stuff out now that I don`t want to "Lead you down the garden path" with some outdated info. There are a lot of folks out there that know more about this stuff than I do now. :wink:

Boone, my guess would be you just got a "bad" set of lifters. I put the same Engle cam in my 1915 engine but I can't remember what brand of lifters I used. I'm thinking I got my lifters from SCAT or CB Performance.
Did you buy them locally or get them mail order? If they came from a local source take back and compare them.

Let us know what turns out.

Glad to hear all is well.  Smelly indeed needs guidence, but he lives in the  LaFayette Triangle, a place which has very strange things happen to VWs and their owners. You will have to check back post on the Tech Questions to understand. National Geographic will not even venture there.
   Zen, our club prez. who lives in the Triangle escapes from his bunker and runs the gauntlet once a month to preside over the club gatherings. I don`t recommend you coming down to help Smelly unless you come armed and have a company of Shock Troops. :lol:  :lol:  :lol: