Thanks, Chaz,
I will have to check my 1960 261 (it is now in a distant land) to see if it has the "small port/plug to the left of the 1/2 oil port". I'll also ask my friend with a 1959 261. There might have been differences in this "feature" between 1958-1963?
The more we think we have things figured out, the the more we find that we do not know.