.001 is a good percentage of the lash.
The guy who worked on my 250C's (great cars!) believes that you should just barely be able to pull the guage through. He also rotated the engine until the appropriate lobe was in the middle of the closed position to adjust. He did them one at a time.
Falls Church VA
'86 300E 5 speed
'95 C220 (wife's car)
'98 Porsche Boxster
Past: '79 280E, '82 300D (18 yrs), '77 240D,