Floating valves happen when either the valve springs or the lifter cannot react fast enough with the RPM of the engine.
This causes the valve to "float". By floating means the valve doesn't close fast enough causing less compression and/or the valve doesn't open all the way causing not enough fuel/air into the cylinders. Basically you do not have enough pressure to operate the valve correctly. Floating valve train can also damage rockers and bend pushrods.
With pushrod engines, even with stock lifters and springs, The cam could spin faster than the valve train is capable of moving and cause floating valves if the engine is near redline or over-rev'd. It is more prone with hydraulic lifter pushrod valve trains as you have the spring and the inside of the lifter moving. Solid lifters assist in causing less float, But require more maintenance to keep the adjusted.
To correct this you can get a set of performance valve springs and lifters.
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[This message has been edited by Oreif (edited 06-13-2005).]