You would have to be having quite a leek if there is the hole there that I thought. The seal is not supposed to be holding in pressure, just oil in generall from the front main bearing and splashing oil inside the engine. With the drain open, it should be able to drain out faster than it gets in. I would suspect that gasket as having a chunk missing or a crack in it from age. The one that was on my block that I reubuilt was petrafied.
Good luck with it keep us posted.
Jason
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