How do you set hydralic valve clearance for cvh 1600?

You don't they are hydraulic. If they are noisey it means the tappets and cam have worn out and need replacing.

Make sure you buy a new cam and tappets together. Use lots of cam lube when assembling.

When you start the car as long as it starts ok Rev it to 2000-2500rpm and don't let it idle for 15-20mins. You can do this in 5min stages by switching the engine off in between. If everything has worked as it should then that cam should last you another two years of hard use (about 30,000miles) before the wear starts to slightly affect performance. I've heard of well looked after engines with very regular oil changes using good oil last over 100,000miles.

The CVH is a high cam wear rate design but cams are quite cheap and easy to replace. You don't need to remove the head and its should only take a few hours.

The timing may be all over the place if a distributer is used. Set it to its middle position and then set it properly when your done uing a timing light. 8btdc for 95 unleaded and 12btdc for 97 ulnleaded