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If the oil is leaking from the lower studs and not around the manifold gaskets. then the last post is correct. the lower studs in the head are drilled through to the push rods. the manual refers to installing the lower studs only so far into the head. if installed to far into the head , the studs will actually rub against the push rods. I had just finished a E7 mack engine rebuild and use the Mack elastic Grey silicone on the lower studs. I don't have in front of me the actual measurement for stud depth. safely can say that the new studs have red lock tite on them. you can install studs until last thread of lock tite is seen. you only need alittle silicone on threads.

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