Brand new long block, rear main seal leak from housing bolts
 

I put my brand new long block from a machine shop in about 2 weeks ago, got it running last week without any hick ups. Had an oil leak, so I put some oil dye in and concluded that it was the rear main seal leaking. Luckily the machine shop was local, so he pressed the a new seal into a housing and gave it to me at no charge.

I pulled the transmission and the leak was actually from the top bolt of the rear main seal housing. After pulling the housing I got up in there and noticed that the bolt hole went all the way through the block. Just a tiny little hole. I called him and he said that sometimes happens and I should just silicone the bolts. I siliconed all the bolts and re-installed the rear main seal, put the tranny back in and buttoned everything up but I'm unhappy to say it still leaks.

Now, my old engine was clicking and clanking and leaking from everywhere BUT the rear main seal when I pulled it to give it to him to rebuild. I don't want to play the blame game, but I think it obviously happened during the rebuild process. I don't know if it's something he always looks for in a block, so I don't know if it's his fault he didn't notice it.
I'm not a machinist, but don't machine shops test blocks? He said that he chases all the threads and makes sure they're good. Can any body chime in if you've seen this before, or any machinists here?
I didn't touch the rear main seal when I installed the engine.
Now this third time around is up to me again, no warranty on labor and I want to make it right. No leaks. Silicone obviously didn't work.

Any body have any better suggestions? I was thinking maybe JB welding that hole shut, then trying Teflon thread sealant? I paid 1800 dollars to have a good engine that didn't leak, and that's all I want again. I am beyond frustrated, all I want is for it not to leak. Other than that, the motor seems great.
Any advice, tips, or experience. Please. please tell. If I take the tranny out again I will take tons of pics.
thanks
Here is a google link to a picture of a rear main seal housing bolted to the block. (This is NOT my engine, just a demo) out of the 5 bolts, the top one is were it leaks. That bolt is lined up with the splash area I believe under the cylinder, so it's going straight to the crank case not under pressure. https://www.google.com/search?q=22re...tm%3B250%3B192

Did you take off the valve cover by any chance?

No, the half moon grommets are dry

You paid for a rebuild and you got a crappy job it sounds like.

I really wish I could take it out and have it fixed professionally. The rest of the engine looks good, and it runs good. The transmission only takes a few hours, the engine would take more time than I have to take it out. Then I would be stuck waiting another 6 months for an engine. I have not mentioned the name of his business because I am still going to try and work something out with him to make it stop leaking. No need to bad mouth a man's business over a possible honest mistake

Then I take it it's leaking through the bell housing and leaking out the bottom of it, correct?

You said its making noise too right?

yes, correct. from the shift fork boot to. which tells me it might be being flung around by the clutch or flywheel

sorry, should have worded it better. The motor was fubar before I pulled the motor to send to him for a rebuild. Every thing else seems to be A ok on the new motor.

Responded to your PM about what I think is the issue...

I do want to reiterate that my purpose in this thread is not ask what I should with the machinist or whether i should push for a refund, but to get any tips on sealing up that hole. If I pull the tranny again I will take tons of pics so I can post them up here.

I was thinking, there is a bolt on the oil pump that goes through to the block as well. Always takes some silicone to seal it up, I know you tried that already, but is that the same one that continues to leak?

Yes. The bolt hole did not go all the way before. There is a.small chip maybe one.or two millimeters now where I'm sure it's leaking from

That sounds like the block is bad totally.

Is your PCV system working properly? If there is excess pressure in the crankcase it could be forcing oil out past the bolts. Normally there should be negative pressure in the crankase, which would tend to suck oil back in.

I'm assuming so. No vacuum leaks and all hoses are hooked up properly, new PCV valve, and the valve cover baffle was taken off and cleaned when he rebuilt it. The two hoses off the valve cover are going to the correct places into the intake chamber

Whats going on with this? Get oil leak fixed?

No, I contacted him and he's being pretty helpful and still is confused as to why it's still leaking, but I still have to pull the transmission a second time on my own. He is going to come by my shop when I pull it and said he'll look at it. By look at it, I hope he means he's going to fix it himself. We will see.