could it be the dip stick port spraying oil up onto the block? It is on that side isn't it?

It is right there! Good thinking sir! Thank you I will check that today when I get home and report back.

Just investigated and it is not the dipstick tube leaking... Looks to def be the heads on both side... The gaskets in between the block and head are rusty? It def appears to be coming from the head gasket on each side... Also the heads and exhaust seem to be getting pretty hot... But the gauge is at 145* and it is pumping water. The engine builder (a member here) seems to have done a pretty crappy job for a motor with under 20 hours on it.

And I can't verify timing (neither could they have) because the spray painted the balancer and I can't see any markings on it. :lolhit:

That's normal. Find the engraved line on the balancer and use White out to fill the line in.

Ok. I found it and marked it with a white marker... That would be TDC correct? Also I think I know the answer to this... But the head gasket should not be rusting should it? Heads are coming off tomorrow.

IF you have a timing pointer than you mark the degrees you want BTDC on the balancer. IF you have a pointer that has the degrees marked on it before and after TDC then you mark the zero mark on the balancer.

Sounds like the back of the intake is leaking oil or something of the sort. Head gaskets don't leak oil.

Head gaskets dont rust with 20 hours of use on them. Marine head gaskets are stainless too. But before we all jump to conclusions, did you do a leak down or compression test? Always good to have a baseline. I had 70% leakdown in my cylinder 7 and you could hear the air in the lifter gallery. Pulled the head off and it looks like a broke a ring, you can see the scoring on the cylinder walls.

Compression... All plugs out... Cold engine...
1- 110
2-135
3-110
4-110
5-110
6-110
7-135
8-115