[johnta1]

This is a new build, and #3 cylinder is not firing. I readjusted the lifters on #3 intake and exhaust, I put in a new spark plug on #3, I put a different plug wire on it, I inspected the distributor contacts and all look fine. I removed the plug wire and started it up and re-attached the plug wire while the engine was running and no difference. I put the #3 plug wire close to ground while the engine was running and it's throwing a big ass spark (MSD). All the plugs look good except number 3, I verified the plug is firing but the cylinder is dead. I checked the compression and it's the same as the other cylinders. Could this be due to a bad hydraulic roller lifter?

Not sure where it is written for the plug or plug gap or heads?

Anyway, try a .032" gap. It may also need a hotter plug.

That plug looks really wet with fuel/carbon.

If there is no rag or vacuum leak in that port on the intake, probably need more info. Hard to do this stuff over the internet.

One other thing to try is rotating the distributor one plug post and moving the wires one plug post opposite to it.
(to see if the misfire follows the cap)