OK, now seriously at my wits end and at the last throws of trying/testing things before disassembly of this new engine starts.
I ran the engine tonight with sealed collets, still the oil blues persist...I ran the engine with the tappet cover off, and there is no no visible over oiling at all. The blues are coming primarily (by far) from the right side pipe.I'm 99% sure now the oiling is coming from below, so may be a broken oil ring (can't hear that though) or perhaps a timing side bearing face is not sealing against the crankshaft properly? It's got to be something!!!!!!!
Only other symptoms i can see is there is more oil around the head gasket area on the right side compared to left. Not huge, but it's on the fins where the head/barrel interface and two fins down (guess it's leaking down stud threads and through the hole onto the fin below).
I guess I'm dragging this thread on, but I'm not into pulling something apart that's just gone together, at least not for no good reason. Any final suggestion before I go goo goo gaa gaa and start stripping back