I built up a type IV engine and installed hydraulic lifters in a Porsche 912E. Nothing had to be done to the case, however a cam ground for the hyd lifter was required and a higher capacity oil pump had to be installed. Also, as I remember, I may have had to customize the push rods length for the lifters. 40,000 miles later everything was still fine. If you want me to find the name of the supplier i will have to go into my records. Email me if you want me to.
John