the oil pickup isnt a problem, I did check it as suggested, half a dozen times just didnt post it.. sorry, need to know information... I replaced the pickup itself just in case it wasnt sealed when it was assembled, and the oil pan was replaced with this block because the dipstick tube is on the opposite side. When the idea came up the first thing I did was check the oil in the pan, run the engine until it hit 0 pressure, and checked the oil level, it read full about three seconds after the engine shut down.. it has now had three pickup tubes on it and two different oil pumps... When priming the engine with a drill, I watched the flow from the lifters and down into the heads. No oil pooled in the valve covers at that time, though there wasnt the same amount of oil in them like there would be if the engine was running.
The cam and lifters came from Lunati, Hyd lifters, they adjust correctly (none collapsed) and it does not rattle when running until several moments after the oil gauge hits 0.. and I havent let it run long at that point...

I havent ignored your recommendations, just havent put enough detail in type..

I should also mention, when I first start it, it Does hold pressure for about two or three minutes, which would also lead me to believe that its running out of oil at the pickup, however, once it IS warmed up just slightly, it will not hold pressure at all, even when shut down and restarted. Pressure will jump on restart, Often only to 40 or 50 psi but immediately begins to fall. let it cool off, it will hold 70 psi for two or three minutes. The dipstick always reads right on the full mark.
I do have a set of old valve covers that were cut out, so will pop them on and check it while running just to make sure. Please keep it coming!!!!!!