The oil only seeps out at higher RPM's, not at idle. The valve cover cork gaskets had to be tightened down quite a bit due to "shrinkage". Due to this, the O rings were really touching the lip of the copper spark plug tube nor the bottom groove of the Valve cover to make a seal. So much so that the oil slapping around from the rockers was just working its way up the spark plug tubes on onto the top of the engine.
I went down to Home Depot today and found a similar diameter O ring. It is a little thicker than the original, but the only way you can tell is side by side installed on the copper tube. I put the new "larger" O ring at the top against the lip, and the original smaller O ring at the bottom to seat against the groove in the valve cover. Hopefully this will work. I did notice that the O rings compress at an angle, so it seems the valve covers bolts are tightened unevenly, but not by much. Each spark plug tube now has 2 O rings.
Then on to the Distributor.
Long story short, I took off the angled O ring that came with the distributor, and tried to place it in the machined hole in the intake . It ended up being a slightly smaller diameter that the hole ( did not contact the sides of the hole) When I put this wide rubber band into the grove and then put the angled O ring on top of it, it was still to thick to get into the hole. I tried WD40 as Jay stated, but no luck. Then I tried putting the angled O ring into the distributor groove, and then placing the wide rubber band over it (Like a blanket, so you can not see the angled O ring). Then when I slipped it into the intake hole, it fit snugly!!!! With a little push downward, it was just about flush! So I made sure that the distributor was positioned correctly and then tightened down the tie down. All back together!!!
Before I start it up, test the timing again and go for a test drive, I purchased a new Oil filter and another 9 quarts of 10W30 conventional motor oil. I want to clean the engine off again on the bottom and do the oil change...... then off for the testing.