I don't have a pic to put up, but there should not be any lines running to the head at all. Sounds like the PO was trying to fix a blocked oil galley in the block. Instead of doing it right (clearing the passage) they just bypassed it. If the block has been hot tanked and the passages cleaned out, there shouldn't be a problem with the head getting oil for the rockers. As far as the lines on the block, there should be 2 holes for the oil. The rear one, just back from the throttle pivot, that should also have the "T" for the guage, is the pressure line comming out. There is also one toward the front of the engine, close to the pan rail. That is the return. It just dumps back into the pan. There is one other hole, towards the very back of the block, that one is the water drain. the other hole you see is most likely the mounting boss for a throttle pivot for a different application.
I'll see if I can get some good pix for you to look at.
