Slick 60's

So back to my tick on the drivers front of the engine. I removed the valve cover today and here is what I found. If you look at the picture the rocker arm on the far left is able to move more than I think it should. You can see where it can move on the shaft. As a result of this it does not connect with the valve dead on. Based on the picture does this look right? Is this how it should be? Am I missing a washer? Or do I possibly have a bent valve? Help!!!!

There are several specialty suppliers that have these aluminum spacers to keep everything in place. Necessary at over 4000 RPM.
I bought these from FPP (the old Ford Power Products) who are not in business any more.
Try Blue Thunder.

It looks to me like the wavy spring washer that goes between that last rocker and the solid washer has started to colapse. The rocker should be centered for the most part and there should be no gap between the rocker and the pedestal.

What position should the engine be in when I reinstall the rocker shaft? Is there a pattern to torque the bolts? Lastly, where is the oil supplied from? Through the mounting bolt holes?

First, I have to ask you if you put the rockers and push rods back in the same order that they came off the motor. It matters.
Second, it doesn't matter the orientation of the motor when you put things back on, but I'd suggest putting the motor on #1 compression @ TDC.
The rocker shafts are oiled thru the head and up thru the rocker stands. Passenger side, the second stand from the front. Look at the boss where the rocker stand bolts to and you'll see a counter sunk hole. Then, there is a bolt that has been shouldered (the bolt has a thin shank). Make sure that bolt goes in the countersunk hole.
*I strongly suggest you restrict this hole in some way with a plug that has a 1/8 or a .125 hole in it to cut down oil flow to the top of the motor.
When you re-install the rocker shaft and stands, tighten them down in 10# increments every other stand..... not front to rear or rear to front, to keep from bending the shaft.

I don't have my manual handy, but I "think" I remember the torque on the rocker stands should be around 30 pounds. I promise you, somebody will step up with the actual torque spec's.

I can give you what the service manual for the 65 Ford truck calls for. It is called Valve Rocker Shaft Support torque to cylinder head. For the following motors 330,352,361, and 391 = 40-45 ft/lbs. I dont have a book on a Ford truck with a 390 as tha would be from a later mode. It should be the same but maybe someone else that has those torque values will chime in.