So we rebuilt the engine and fired it up for 20 mins to break in the cam. During this period we developed a pretty good sized oil leak - about 3/4 quart in that 20 mins. So did some investigating and determined the oil was coming from the top of the oil pump. Turns out PO had decided to pry the case apart right where the oil pump seats and made not only an indent but raised some of the material also. So we thought this was keeping the pump from seating on the case properly. We shaved off the raised part and sealed her back up like this: case-permatex3H-gasket-permatex3H-pump-3H-ORing-3H-Cover
Then we fired her up and fixed the spark timing, synchronized the carbs, and set the idle - checked underneath - no leak. Great (we thought) and we drove it around for 20 minutes and broke in the new piston rings. Got back home and sure enough: the same oil leak!
We think the reason it started to leak while we drove it (as opposed to in the garage) is beacause we revved it higher during piston break-in. We think the problem is the groove left behind from the POs prying. Although we shaved off the stuff that was sticking off the engine there is still a little groove (1.5mm deep, 1.5mm wide) that runs up the seam of the case. We crammed a whole bunch of 3H in there but maybe it didn't work.
The other thing is we tried using a "high flow" oil pump from Engine Builder Supply (ebsracing.com). The flange on the pump is a little thicker than the stock one. It also slips into the case pretty easily - as if the round portion of the oil pump isn't seating or sealing well on whatever is in the case. We've heard that the oil pump is pretty tough to get in and out and we thought maybe it's supposed to seal inside the case; preventing oil from getting to the flange. Is this true?
Anyway, we need to fix this. Any suggestions? We were thinking maybe there is another kind of Permatex that will be harder and more permanent than the 3H?