Before doing anaything dramatic, check the simple stuff first. If it appears to be leaking in the front, I would verify that the timing gear cover is actually snugged up. If memory serves, two bottom bolts are secured differently than the others. I believe they have securing nuts that can only be accessed with the oil pan dropped. Often they loosen, but it is not obvious. Others I'm sure will either provide more specific advice or correct me if I'm offbase. However, if I ever drop the oil pan on my 261, I will drill & tap those holes so they are like the rest.
