I was installing my heads with arp studs and I put W30 oil on the washer, nuts, and stud threads. As I was torquing the nuts down the oil must have made it down the short studs at the lower part of the head and some had seeped out between the gasket and head. Should this be a concern?

 

I don't see any mention of thread sealant. That would be a major concern (especially since studs are notorious for leaking coolant without a very good seal).

 

I'd be concerned if I was you...I would wonder if the head was fully seated when you set it on the block. It the heads was seated and properly torqued down then nothing should be able to seep out. If you're sure the head was seated....is it possibly warped?

 

As Shoebox stated,what about thread sealant?Did you use any?

 

It would bother me! I'd be worried that the head weren't seated right.
I like the liquid Teflon. Both the holes and stud threads must be clean and dry before coating the threads with the Teflon.