Took off the inlet valve cover, and there was no clearance, ****** was tight as!
(first kick btw it feels like there's more compression now? im probably just tripping though)
that's right you'll have more compression now
Is it bad if I don't have it at exactly .003 and it is most likely a bit more more like .005 and I can see / feel it move when I play with it?
as long as it's not way too loose it's ok, .005 is fine but you should do it again and try to get it right, I find just bending the tip of the feeler to a 45 degree angle works best, then just loosen it heaps so you can put the gauge in easily and tighten it down on the gauge.
if you take it off you'll need a new gasket, you should order some from DHZ firstEDIT:
I just read bout the exhaust gasket.. I guess the only way to check would be to take the exhaust off?
It's good to see you got your problem sorted