Ok, so here's the thing.... on that motor, after touching the rocker arm nuts you're supposed to tighten them and wait like 1/2 hour for the lifters to bleed down, otherwise they will hang open and hit the pistons slightly when you crank it AND bend the pushrods.
Good news is this motor has the valves 90* to the flat top of the piston, so quite often you can bend a pushrod and not damage the valves.
BUT I really think the root of your problem was carbon buildup in the exhaust ports holding the valves open and causing the pushrods to appear loose.
You now have 2 choices, pull the head and inspect the valves and clean the carbon or you can 1 by 1 put each piston at TDC, remove the valve keepers and spring, then attach a drill to each valve stem, spin the valve while pulling it up against the head. Do all 4 exhaust valves, reassemble and start it. if you have compression and it starts. run it really hard and try to burn all that carbon out.
Personally I would suggest pulling the head off to inspect the valves and clean everything manually.
R&R on the head is really only a 1 hour job and the head gaskets are available for $30
This was such a problem back in the day that Onan actually sells a "Decarboning" gasket kit, which contains everything needed to disassemble the top end to clean out the carbon. You don't really need everything in this kit, but it should still be available. You can also find a complete gasket kit for under $100 if I recall.
I say dig into the ENGINE TM, read up, ask us questions then DIG IN! It's not that bad.
