SlimJim248@earthlink

ok, I have an 85 4runner with a 22re. It is an ATK remanufactured with 70k miles on it. I bought it about 6 months ago. Here is my problem, I went to adjust the valves the other day and all of them had basically no clearance at TDC (about.002, if that). The 4 correct valves were loose though, set exhaust to .012, intake to .008. went around again with the crankshaft and the other 4 were loose and I set them also to standards. Went to start it up and now it won't run for crap. oh, and for it to run good before I touched the valves, I had to advance the timing a little, at 5 degrees retarded it ran, but it ran like it was retarded more than it was. I know the Timing chain it aligned correctly, I have done valve jobs on many 22r's and I know I did it right. I ran a self diagnostics and it came up with the code 28. which points to the O 2 sensor, that doesn't sound right to me, but i don't know. also it it helps the fuel injectors were taken off and sent to rc engineering a few months back. Is there anything else that can cause this? I am pretty stumped right now so any help would be apreciated. Thanks