That is some great information Maybellene! The drilled hole is after the crimp in the return line, not sure what they were doing with that either. I already have the aux oil line to the the head. Wasn't sure if I should leave it or not, but now that I know why its there I will surely leave it.
My plan is now to repair the PCV hole in the side of the valve cover and mount it in the road draft plug and install a breather oil fill cap. They had the PCV mounted in the front drivers side of the valve cover but no way for the engine to pull fresh air as the oil filler cap is a non breather type.
Thanks for the information it is greatly appreciated!