RE: Mechanical lifters-
Yep, I know they are mechanical solid lifters, and we set the intakes to 0.013" and the exhaust to 0.016" prior to replacing the valve cover.
They can be heard more when the engine is warm than when started cold, but they are not silent when warm by any stretch of the imagination w/ the hood open. I would not call them "loud," but they are noticible.
As far as the pistons, they had the right part # on the boxes compared to the ad I linked to above, and the diameter was correct.
We never had the crank out of our hands, and I do believe the shop didn't do a switcheroo on the rods.
We determined that the new pistons WERE 38 thousandths taller by pushing the wrist pins as far out of the new pistons as possible, and into the holes in the old pistons. When we did this, we could see that the new ones stuck past the old ones by enough to account for the 38 thousandths all by themselves.
I've rebuilt around 10 engines myself (this time around I had two experts with probably 100 engines under their belts), and we were all perplexed by the pistons being above the block.
The machine shop that did the work builds extreme performance engines as well as plain vanilla ones, and said they routinely set up engines with protruding pistons, but never with less than 0.025" of clearance between the piston top and the bottom of the head (0.035" if the rev limit is between 6000 and 8000rpm), and thought we should be fine, but it still makes me nervous.
Bob