Big Cat 20 Lives! But oil flow confusion.

I seem to remember there was a port that allowed filtered oil to drain back to the pan but its been a while. I set mine up with Fram filters.

I thought the tube was over flow only or a bypass. So the oilflows up through the center of the filter out into the compartment then in the tube?

I would check the clutch housing and the valve cover (think that is an overhead valve engine?). Seems odd that 2 gals of oil would fit in the filter housing? My understanding is that the felt filters were bypass filters, not full flow. Please correct me if I am wrong?
If indeed all the oil is in the filter compartment, then remove the felts and try it again. This would eliminate them as the problem.

The inspection plug for the bell housing has a small hole drilled in it. No oil leakage from there. I considered it holding up in the valve cover. I would think it would have drained back after a couple of days and the gasket has absolutely no leaks. I suppose the filter compartment could hold 2 gallons. I am going to drain the filter compartment and check out the springs and balls.

More info that might help

http://www.acmoc.org/bb/showthread.php?14481-Oil-Filters-for-my-Twenty&highlight=filter