Have you checked the oil pressure sending unit?

 

Gator,
OH hell yeah I did. As a matter of fact while building the motor. I put the HE_MAN death grip on it so it will not leak. Thats another horror that I have had. Sunday im going to pull the tranny. Based on my last findings I believe the leak is coming from the rear main seal, or the Oil plugs located directly above the seal. The way the oil traveled from 12 o clock to the 6 o clock which is directly behind and underneath the rear main seal metal part area. It tells me that one of those plugs are leaking. Just another theory.
Chris

 

I still don't believe it's the rockers that are causing your height clearance issues. I'm thinking the adjusting nuts you have are probably too tall and are hitting the tops of the valve covers. You can buy shorter adjusting nuts from Summit. Use some grease or assy lube, smear on the tops of the valve covers and put the covers down on the heads using one gasket and see if they are making contact.
I am still not convinced your rear main is leaking. I'd investigate the oil pan gasket first. I never stated it was time for you to pull your engine or tranny for this.
You can invest in some oil dye to put into the engine to help find a leak. You absolutely must clean the engine spotless or it won't work.
Just stick with the stock PCV system.
This rag theory of yours. Have you simply just run your hand around the perimeter of the head?

 

SS RRR
Ok, As far as my rag theory. Yes! I did feel around the intake, heads etc... And there was no oil at all. While under the car I wiped clean everything. Started the motor and moments later was when I noticed the oil travel from the 12 o clock position and rest at the 6 o clock which is directly under the rear main seal and start to leak. Now im also thinking like you, I dont believe its the rear main. I think its the cam plug, the circle one directly underneath the three small plugs. Reason being. WHile installing the cam, I remember hitting the back of that plug a few times trying to adjust the cam while installing the timing gear. Again I dont think its the rear ither anymore. Also I did know they sell smaller locks for the rocker arms. Ill have to invest in those. SS RRR thank you and everyone else who has helped me on this matter.
Chris

 

Update!!!!
I FOUND THE LEAK EVERYONE!!!.
After pulling the trans out on Sunday. I took a peak behind the flywheel. And Ill be gosh damned. The rear of the camshaft was exposed. I was thinking to myself. Theres suppose to be a cover on that or a seal. I went down to napa to picked up a camshaft plug. Installed and the result=no leaks!! Thank god. I would like to thank everyone on this board for helping me with my issues. Now I can have some fun driving breaking in the motor etc...
CHris