Valve Clearance Adjustment is one of the mandatory and most important maintenance that your VWs would forever need WITHOUT FAILING atleast every 3000miles. If you fail getting this adjustment done for long, I warn you, you'll end up burning up a valve and thus a failed flat four!!! So it is highly recommended that you DO NOT fail in getting this adjustment done every once in a while. It doesn't just make your motor run cooler and quieter but also ensures that your motor lasts over 100,000kms (if it was done accurately).
The Valve Clearance Adjustment MUST BE DONE on DEAD COLD motor, i.e. when the engine has been left overnight. Patina was parked for two nights before I started off without revving up.
Just done with the valve clearance adjustment on Patina. Ever since I had bought her from PO, it was due, since I have no clue how long ago and how many miles on the clock Patina had put up since the last valve clearance adjustment before she was passed onto me. I have driven her a total of 1000miles (roughly 1600kms)ever since she is with me so it was high time that I had it done and whats better than doing it yourself because no mechanic (except Khalid Sb. in Westridge/RWP) would do it the right way - I know it by experience!
Here is the bookish procedure that you should always follow when observing Valve Clearance Adjustment on your VW (And thats exactly how I adjusted the valve clearance on Patina):
VALVE CLEARANCE ADJUSTMENT PROCEDURE BY ROB & DAVE
When I opened up the head covers, here is what it looked inside (please note the stock 1965 "round bosses" heads - part # 113 101 371C - 4th generation heads which are correct for 1965 bugs and are one generation apart from 113 101 373 heads which are considered the perfected heads on any VW flat four - 113 101 373 are 1965 only and famous for being rather 'perfect' heads)

The next thing to do was to find the TDC (Top Dead Centre) so that the Cylinder #1 Valves could be checked/adjusted: Here is pictorial demostration of bringing the motor to TDC (This is to show you that you must ensure that Cylinder #1 is at Top and not the Cylinder #3 - even a rough TDC should do if you dont want to be too precise about it). Please note that the distributor rotor aligning with the nail size notch in the distributor rim & the TDC mark in the pully aligned with the crank case:
Now note in the below pic that after the motor is at TDC the cylinder #1 (on the RHS of the motor - towards the front of the car) valves are at top and ready to be adjusted:
The two valves at the very front and very rear of the cylinder head are exhaust valves, and the two inner ones are intake valves.
For 1965 1200cc 40HP motors the recommended intake valve clearance is 0.006" or 0.20mm, The recommended exhaust valve clearance is 0.012" or 0.30mm so thats what I followed for the adjustments on Patina too.
Its first better to check if the valves are running at normal clearance/are too tight or too loose using the feeler guage. Cylinder #1 on Patina was running normal.
Once done with the cylinder #1, it was time to move to cylinder #2 valves (on the RHS of the motor - same side as cylinder #1 - towards the rear of the car). To bring the cylinder #2 to top, move the engine crank/generator pulley counterclockwise 180 degree (half turn of the crank pulley). The distributor rotor would stop at this position when the cylinder #2 is on top:
Checked the valve clearance and noted that cylinder #2 valves were too loose so adjusted them according to specs mentioned above for intake/exhaust.
Once done with cylinder #2 it was time to move to the other (LHS) side of the motor to adjust cylinder #3 and cylinder #4. Opened up the head covers and this is the first sight I saw:
Now to bring the cylinder #3 on top it was time to move the crank again counterclockwise by 180 degrees (back to TDC mark on the crank pulley). Here is what the position of distributor rotor would be once cylinder #3 is on top:
Checked the valve clearance and the valves were too tight. Adjusted the clearance to specs and moved onto cylinder #4 on which again the valves were too tight. The cylinder #4 can be brought on top by moving the crank further counterclockwise by 180 degrees. Sorry, I forgot to take a pic of the distributor rotor position for this one 
After I was done with adjusting the valve clearance, I double checked the clearance on all the valves by repeating the procedure from start and then packed the head covers with new cork gasket. One of the gasket (LHS one) was broke as it had become too brittle under heat as the cylinder #3 & #4 were running too tight.
Please note that whether gaskets are in tact, I prefer changing the cork gaskets on both sides everytime I adjust the valve clearance. Please also note that its ALWAYS better to use thin film of grease (on both sides of the gasket) to pack the cork gaskets than to pack them under shellac or any other packing material.
Once done with packing the gaskets with thin film of general purpose grease, I fitted back the head covers and double checked that the covers were securely seated in place and the bail was tightening them in position well enough to prevent leakage and I was DONE:
Once done with the valve clearance adjustment by the book, I moved and adjusted the breaker point gap in the distributor at 0.016" or 0.4mm which is the recommended reading. This should ensure perfect ignition. Replaced the distributor dowal/cap and moved on to tighten the fan belt to the specs i.e. 5/8" play, which was touch loose when I started.
I wanted to check and adjust the gaps (to recommended 0.028" or 0.7mm) on the spark plugs but were short on time as had to be back at office for some official engagement. Will do it later tonight.
Now it was time to rev up Patina which was sitting cold for last two nights. Revved her up and man was she running quiet and smooth!!! Splendid improvement in motor sound and it was a treat to listen to her motor - which sounded anew!
Now she is all ready to leave for the sand bashing tomorrow on the chenab bank. See you next with sand bashing pictures 