Did you use premium anti-pump up lifters? In my experience these lifters bleed down a bit more then a standard lifter. They are designed this way intentionally and also use a hardened steel circlip for the piston rather than a wire retaining ring. This allows an engine builder/tuner to set valve lash to zero vs. the standard .030-.045 preload that we would use on a street engine. This prevents hydraulic valve float (vs. spring induced float) that will limit rpm on a race engine used primarily for racing where high rpm performance is the only consideration.
Comp makes a great cam as does Crane and I've used these cams exclusively. This is not to say that there are other good cams out there such as Lunati and Hughes, I've just never used them so I feel that I cannot comment on them in good faith.
I would imagine that most any cam manufacturer nowadays would not warranty a cam without the use of a break-in lube as Cudachick has already mentioned. This is due to the reduction of zinc phosphates in newer fomulations of oil 'cause the EPA says that these anti-wear additives reduce the effectiveness of modern catalytic converters. Or maybe they just hate our hot rods and the people like us who are self sufficient and independent, lol!
BTW, the last engine I built and fired up used a Crane cam. I used the Crane supplied break-in paste that does not run off as I knew it might be a while before I had a chance to fire it up. I filled the crankcase with 20W-50 Valvoline VR-1 and have had no problems whatsoever. What I thought was a lifter tick was just a header gasket leak (Damn it man!).
One thing about the Comp XE series cams (including the XE262) that they expressly note in their installation instructions is that these cams REQUIRE AN ADJUSTABLE VALVE TRAIN, lol! You can't just slide one in and expect to bolt in the stock rocker shaft/arms/pushrods and race away. Some people may have gotten lucky due to manufacturing tolerances (which were huge on these engines!), but you just can't bet on it.
Sorry to be so long winded but so often I would like to get in detail and just don't have the time, but i got the time now, lol!
So in summary:
1. Are you using an adjustable valvetrain?
2. Sure it's not a header leak? I swear it's had me pull the valve covers more than once, lol!
3. Did you coat the cam with break-in lube and was it a paste or the runny red stuff?
4. How long did you wait before you fired the engine up after installing the cam?
5. Did you have to crank the engine excessively before it fired?
6. Did you pre-lube the engine with a drill before you fired it up?
7. Are you using anti-pump up lifters?
Your ever present and somewhat obnoixious and slightly drunk a-body bro.
