"They appear to lightly be touching the piston, which obviously isn't good, but since they don't seem to be hitting that hard, I'm hopeful that they will be in good condition (I can still turn it over by hand, so they valves aren't stopping the pistons). "
when I was building the Aero engine, Ilooked up a lot of this kind of stuff. Of course.. I've promptly forgotten, but .030" clearance rings a bell. At any rate, look it up to be sure.