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You shouldn't have to adjust the valves that often. Once they were ran the first time on the dyno, they shouldn't have changed enough to make that much of a difference.
What did you set them at the first time? What are they set at now?
Closing the lash will increase the effective duration of the camshaft, thus making the engine believe the cam is a little larger than it is. You can usually gain/lose some peak hp/rpm depending on where the lash is, but 110rwhp isn't logical or reasonable.
You need to find out what other variables changed.
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