Just recently rebuilt a 261 and got it running. During the rebuild, the block surface was milled as was the head. I used a gasket kit from Patrick's, can't remember the brand of gasket, but was not Fel-Pro. There is oil leaking on the right side of the engine in the area where the oil goes up to the rocker arms. Could this be a head gasket problem? I have not re-torqued the head....engine has a little over an hour run time.

I had the rocker arms rebuilt and the re-builder sealed off the oil "return" on the center part of the rocker assembly where oil comes in. Could this be over pressurizing the system causing the head gasket to leak oil?