I have really pondered this modification also. My 54 235 originally came ith no filter at all so I was real proud of myself when I "stepped up" and added the Fram style bypass filter. I have been told that these engines were designed to be work horses and it was common practice to overhaul them "in the field by installing new rings and bearings with no reat attention paid to the environment. Of course, life expectancy was less back then also as was the metal technology standards.
So I don't know whether to drill my 54 261 block and try to figure out what to do with the remote oil filter, or to just keep my same old bypass filter and plan on more frequent oil changes. In my days of stupid youth, I must have had money to burn and certainly more than brains because it was common practice to change oil every weekend. What a maroon huh?
