Jerry,

Forgive my continued questioning. You might have taken care of this.

It looks you have small diameter oil filter line. Do you have a by-pass oil filter?

The 1962 261 is normally set up for a full-flow oil filtration system, requiring 1/2" oil filter lines on both sides of the filter canister. It looks like you have a smaller diameter metal tube and smaller than 1/2" inner diameter lines.

I think you can set up that year-engine for a by-pass filter, but I have never seen that done.

What you have might be OK (I might be wrong bringing this to your attention).