cgresham1212,
If you posted this question elsewhere and received the information you wanted, I apologize for keeping this thread alive.
It looks like you have a 58-62 block (
the inliners site lists it as a '59-'62 261 block number). This block allows for a full-flow oil filter (I thought it was an option but it might have been standard for some/all years). If it was an option, I think there was a procedure to "set up" the block for an oil filter (it looks like you know this - you refer to a "plug being driven in"). I think that once an oil filter has been installed, the holes for the oil filter lines should not be plugged,
I cannot find in the 1958 or 1960 Shop Manuals a description of how the 261 block is "prepared" for the full-flow oil filter. I recall reading about this but I cannot remember where.
Here is a quote from a Technical Article on the 261 engine that is posted on Jim Carter's website:
""Warning" When Installing a 261!
The stock remote filter system has two very visible 3/4" lines threaded into the block. One is from the pump to the filter and the other from the filter back to the block. Oil must leave and return to the engine by these lines (even if the filter is eliminated) or the engine will fail from lack of lubricant. Many 261 engines have been quickly seized after persons plugged the two oil line holes. They had many years experience on Chevrolet engines without the full flow oil system. Some thought it was an easy fix to just remove the 3/4" lines if one was leaking and cap the holes. This procedure was acceptable on the older 216 and 235 but never on the 1958-62 261 truck engine."
There should be no need to drill or tap the block in order to use a full-flow oil filter. The "3/4" oil lines are, as I recall, connected to 1/2 NPT holes in the block.
The is a picture of the 1960 261 oil system set-up:
[img]
http://home.nycap.rr.com/lederman/images/fullflowsetup.JPG[/img]
Tim