The milling process did not remove that much material from the block or head and all of the treads where chased prior to assembly. With this, I feel confident saying the threads are clean and bolts are not bottoming out.
Dave, I have never done that in the past but understand what you are saying. When assembling the later sixes (194, 230, 250, 292) I never re-torqued the head and they did not give trouble.
I actually used the 216 rocker center sectoin to oil the 261 rocker shaft. I tapped the head for pipe threads and put a brass 90* elbow and ran a oil line from the head to the rocker arms. This would allow the rocker arms to get full oil pressure. This may have been more oil pressure than the head gasket wanted and allowed some to seep out. I drilled the hole in the brass elbow to relieve some pressure. Next time I have the valve cover off I'll get a photo. It will be next week before I can re-start the engine to see if this helped.
