Cory, FYI, first issue is your 261 block set up for full flow oil filtering. These motors could be had for full filtering or no filtering. Depending if the plug on the manifold side of the block is pushed in (should be just over half an inch), or out meaning flush with the block. You can just barely see the plug I'm speaking of in the photo of the green block/filter, it appears to be 'out' which is where it must be to get full flow filtering. If you do not have this filter with plug in the out position block will burn up due to no oiling.
Best of luck
