340 adjustable LOCKING rocker arm kit

You definitely need more than adjusting screws with nuts. Where did you get the shims that you put underneath the shaft? Were they too offset the Rockers or were they just to raise them up?
It looks like your rocker arm is rubbing against the valve spring retainer.
What kind of RPM are you expecting out of this motor? Does it have a solid lifter cam or a hydraulic?