Valves Too Tight?

Hi!
I just checked my valve clearance,
Intake and Exhaust on 2-3-4 were 0.06mm-0.08mm
But #1 was 0.04mm on the intake, and I couldn't even get the smallest blade (0.03mm) to slip into the exhaust side!
(the previous owner must have tightened 'em up)
So my question is; Do I leave them be, and run it? or do I have to pull the cams, replace shims, ect ect?
Doesn't Tighter=More Power?

Also: She runs lean on top. Could this be due to the current valve lash? Or my 110 main jets.
I am 100% sure its not a vacuum leak.
(new carb holders, spray test, new exhaust gaskets)

Those K&Ns are supplying PLENTY of air, and the baffle on my 4-1 kerker is blown-out, so this is also a factor for leanness no?

Bike specs:
1978 KZ650 C2
Dyna Ign
K&N Pods
4-1 Kerker (baffle needs re-packing)
110 mains
17.5 pilots

Any help would be great! Thank you.

You might want to buy a manual. You need to replace some shims. Too tight mean the valves will hang open slightly and you will lose compression and foul plugs and eventually the bike will quit running. Lean on top? You shouldn't really be lean with your jetting. What makes you think you are lean on top? Lack of power (see comment about valves). We have a "Valve Clearance" article on our site under wg's Tech Stuff Index that will explain clearance and its importance. The article isn't written for your bike... you do have shim under bucket type cylinder head. You need to pull the cams to get the buckets out to swap shims. Swap some shims and check your cam chain tension.

I have a manual. It was helpful enough to get this far.
I'll just pull it then.


Lean on top? OK I ran the bike wide open, shut it down, rolled into my driveway, and pulled a plug. it was snow-white. That is how its done no? however, its brown/or black after idle.