If you crank it with the bolt off and get oil spurting out, then it is the head bolt causing the problem. You need a special head bolt with a hole in it, or you can take a thin grinding disc and make a path for the oil to flow past it. (away from the engine so you don't get metal dust in the oil). Are you sure there isn't already a hole in the bolt?
The reason I do not like to see a piece of tubing from the drivers side plumbed all the way around to the passenger side external port is because that is how I can tell the engine has not been oiling properly and someone took the easy way out. (which I see a lot!) No offense, just would be nice if you could get it to work as intended.
I wonder how many of these engines that require a bolt with a passage still has that particular bolt in the head, just in the wrong location because the rebuilder didn't know one of them was different.
