A follow up. I have done a lot of internet research on oil systems. Yes, the oil filter is a pressure device prior to the crankshaft. All the while, the pressure guage read 40+ pounds. I am really hoping, the improper filter provided enough resistance to at least provide some oil to the bearings. It is a new engine, and I am finally off the rebuilders warranty so I can use synthetic oil. I ran it after replacing the oil, complete chainge, proper filter, and it did not make noise, nor did it show a drop in pressure.
I cannot believe I did that. I have done so many oil changes in the past, I cannot believe something that simple was not checked.
I did run the engine after I completed the oil change, and watched for leaks. I did not see any untill after I went for the cup of coffee. Perhaps, if I have anything left, it is because I do not really sit down a lot and have coffee.
The guage was reading 40lbs when I saw the leakage. Arrrrgh.