So I tore into the motor today. All was going well, got the head off, zip tied the timing chain to the overhead cam shaft sprocket so I don't loose my timing. Took out the chain tensioner, removed all the head bolts to get into the top to remove the 2 hidden head bolts. 3 of the 4 were torqued correctly. The one Acorn nut that isn't is the one that leaks like old faithful when running.
Here are some pictures:












After lifting the head about 2 inches and inspecting the gaskets between the cylinder walls and head I found no reason for oil to be coming out of that bolt hole. the oil flows up the chain side, not the side with the bolt. the Acorn nut that was loose is on a about 12 inch long bolt down to the crank case, upon re-assembly, I made sure to torque everything down, except the one that was loose will turn, but never get tight. Its not free-spinning, it will take about 5-ft/lbs but never get tight. It seems to be spinning the bolt down at the block. HOW COULD THIS BE? should I pull the ENTIRE top end?

This seems like its going to be a full motor out thing. I looked at doing that today but realized I could get the head off without too much pain. I really don't want to have to split the crankcase, thats just asking for trouble later.