.060" on the preload.
For measuring, you want to make sure that the adjusters are choked up tight to the rocker arm body, as fryedaddy says. You want them down far enough that it gives you pushrod cup to rocker arm body clearance, but you don't want them down so far that it starts giving you "pushrod sweep". If the adjusters are hanging way down, a lot of cam lobe lift is translated into pushrod end movement instead of valve movement.
As for where to measure, I think the "EVO" method is more accurate than the TDC method. Pick out a cylinder, roll the engine over until the exhaust valve starts to open, then measure the length on the intake valve. When you're done, roll over until the intake valve opens and starts to close, then measure the one on the exhaust valve.