I finally got my heads off today. But after I removed the drivers side valve cover I noticed a tiny round copper-like spacer looking item sitting on the rocker assembly. Does anyone know what this is and where it came from?

It's roughly 5/16" in diameter maybe a little smaller. I'll try and post a pic tomorrow.

 

Part of separator ??

 

Probably one of the metal spacers from your valve cover gasket. Look at the old gaskets to see if one or more are missing.

 

X1 on the valve cover gasket spacer.

 

valve cover gasket spacer

 

Crap. Should I have saved it? I can't find the little bugger now.

 

If you can't find it, you could take another one out of the gasket and try to find or make something suitable. They are just in the holes of the gasket so the gasket cannot be overtightened. If you don't have one to put in when you're putting it back together, just remember that, and don't rely on "torque feel" when you tighten down that bolt. Might have to count turns instead or something to that effect.

Edit: Long day at work... If you are replacing head gaskets, you are going to have new valve cover gaskets too..
Disregard anything above

 

Your new gaskets will have them already. just be careful when putting your new gaskets on and don't let any come out and get away from you. You may want to hang on to your old gaskets/spacers just so if you did loose one from a new gasket you could steal one from an old gasket.

 

don't worry about it, i don't even use them just don't torque the crap out of the valve covers.