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In this articles I removed the engine, and it was not a pretty engine. I was able to find the oil leak, which was not the rear seal, but rather the external tubing. More on that later. I've painted the engine, and am putting it back in:
So much prettier with the new paint job, and it is nice to be able to tell where oil leaks are coming from and not get covered with 40 year old grease every time you work on the engine.
The engine load leveler tool I purchased helps a lot in getting the engine in at the right angle. You can see Romeo, the 1963 Rambler American 330 with the bad frame in the background. One thing that was puzzling was the engine mounts. It doesn't look like the engine mounts are in the right position. I did install new front engine mounts, and they looked the same as the old. It turns out it was simply the way the engine sits when fully lowered on the mounts. To install, it is easiest to remove the driver's side mount and put the passenger side mount in the slot as you lower the engine. Here are a few more shots of the engine after I installed the head, valve cover, and carburetor:
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