I checked the oil on my newly rebuilt 2.0 to check color, etc and noticed it was over the high mark about a half inch or more [cold engine sat overnight]. Should I bleed off the excess?

No leaks so far

yes, if you drive it like I do it will barf out all over your spic and span engine bay.

ask me how I know

i like my dipstick about 1/4" over the mark. 1/2" is probably a bit much. got a puke tank?

Before you jump to any conclusions, do an oil change, and add the specified amount of oil. Then start the car and let it run for a few minutes, and then shut it down and let it sit for 15 minutes or so. Then check the oil level. Wherever it is on the dipstick should be the 'full' mark.

It is very possible that during your rebuild, the dipstick tube got knocked out of position (there is nothing holds the dipstick tube in an exact location). If the dipstick tube got knocked in or out, then your oil reading will appear to be off, when it reality it is not.

If you find that the oil reads say 1/4" high when you know it is filled properly, then you can either make some new marks on the dipstick and live with it, or you will have to move the position of the dipstick tube 'out' by 1/4". You do this by removing the taco plate on the underside of the engine and tapping the dipstick tube up from the bottom.

Demick