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Hi Gosfast, thanks. I understand how it all works because like you I have modified blocks, 4 so far with two of them for the full filter system that requires the plumbing run on the outside of the block inside of the flywheel. (I posted pics earlier in this thread of a modified block with the spin on oil filter conversion I am making for them.) I am currently running my 8BA with the full filtration and mine has about the same numbers as yours except the hot idle drops to 10 to 15. That is probably due to the 1/16" hole I drilled in the oil tube plug behind the cam gear for a little extra oil directed to the timing gears as per Mike Davidson's flathead book.
So, like you, I understand the system, I was questioning exactly what set up Merc Cruzer had when he discovered the problem. Did he have not have a filter on it or if he did, was it plumbed like stock routing the oil back to the pan? Sorry for any confusion.