In normal operation, the oil pump AND the oil pickup AND tube on that engine are submerged in oil, at the deepest part of the sump, and a little squatting at the rear is NOT going to change that. If, for some reason the pickup tube has fallen off altogether, that MIGHT cause the pump to suck air momentarily from time to time as the oil sloshes around. Also, the tube could be intalled wrong, too far off of the "floor" of the oil pan. However, I don't think it could be tipped up a LARGE amount, as the rotating assembly would hit it. Another thought... you do have it full of oil... (5 quarts with the small filter)... if you know this, OK, but it HAS happened where someone has put the wrong dipstick in an engine, making it APPEAR to have more oil in it than it actually does. You say you had the valve covers off, and it was clean in there. Did you happen to check the oil return holes at the lower front and back of each head? The oil from on top of the heads has to get through those holes to get back to the lifter valley, and THEN through a whole bunch of holes to get back to the crankcase. If sludge WERE a problem, I would think it would be MUCH more likely to be plugging those 4 small, LONG passages in the heads than the multiple SHORT passageways from the lifter valley to the crankcase. If you pull a valve cover again, and have a GOOD penlite, you shold be able to see down into the lifter valley through various holes in the head castings BETWEEN the little holes the pushrods come up through. Post back and let us know what you figure out!
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