A photo or two would confirm locations, but I think I understand.
1. "The first one is in the head just underneath the valve cover. Its about 1/8 pipe thread on the passenger side of the engine."
This plugs a hole to an oil passageway/journal. I think others have posted that this hole/port was needed by the factory to drill a hole inside the head. The "access port" was then plugged. That hole could be used as a cob-job attempt (via a non-GM "upgrade" kit) to get more oil to the rocker arms (the steel/copper line you refer to)?
https://www.stovebolt.com/ubbthreads/ubbthreads.php/topics/1100613/top-oiler-question.html2. "The second port is on the drivers side of the engine towards the back of the block. When I bought the engine it had a block heater attached to this port. I removed the block heater and I'm almost positive that port goes into the water jacket. What has me confused is when I removed the 1/4 pipe fitting the block was full a black sledge looking grease."
This is hole into a water/coolant journal. Water can be drained out of the engine/block from that hole. The black sludge is simply gunk in the water/coolant - it can "crud up the coolant passages in the block". This has been recently discussed.
https://www.stovebolt.com/ubbthreads/ubbthreads.php/ubb/showflat/Number/1248905/Searchpage/1/Main/182515/Words/%2Bdrain/Search/true/re-water-jacket-plug-in-235.html#Post1248905
https://www.stovebolt.com/ubbthreads/ubbthreads.php/topics/1248679/part-name.html
