I have a 62 service replacement 261 block (according to the casting code) and it is drilled for hydraulic lifters, though when I tore it down it had hollow milk bottle-style lifters.
1951 3800 1-ton "Earning its keep from the get-go" In the DITY Gallery 1962 261 (w/cam, Fenton headers, 2 carbs, MSD ign.), SM420 & Brown-Lipe 6231A 3spd aux. trans, stock axles & brakes. Owned since 1971.