Kevin, thanks for the tutorial from Melling. They have built a few more engines than I have I'm sure

Follow Denny's advice and install a paper gasket between the pump and block. Those surfaces aren't as true as you might think.

The distance the oil pickup sits off the bottom of the pan is determined by where and how you twisted and banged the pickup tube into the pump body. With the pan off and the motor sitting pump-up, make a small cone of clay, place it on the pickup and gently position the oil pan down on the motor. The height of the clay will tell you the position of the pickup in relation to the bottom of the pan. Shoot for 1/4" to 3/8". Twist the tube in the pump body to adjust the clearance.

Something else I always do before bolting the pan on is to epoxy a couple of strong magnets to the bottom of the pan. I get them at Radio Shack. They won't collect aluminum, tin and antimony from the bearings, but they will collect the bits of ferrous metals that will do the damage to other parts.