The hydraulic lifters come out next. If they're varnished below the lifter bores in the block, they won't come up. Spray penetrating oil on them and work them up and down to free them. If they're really gummed, lift them up until they get stuck, and remove them by pushing them in after the cam comes out. Our engine had a couple of individual lifters replaced along the way, as evidenced by the mismatched oil bands on these two.