From what I've seen, if it can be fixed DVW can fix it! Was this a new Koleno block? That guy was pretty particular about quality control. (In a good way.)

Ya block was a brand new ,but it was one of the earlier blocks that had some core shift. They machined the oil feeds to the heads and broke into the water jacket about a 1 1/2" down from deck. I will get it all patched up tomorrow and ready for cleaning and reassembling . I'm going to drill and tap below leak put set screw in to block oil pressure, then fill upper part with the leak with jb weld to block off water jacket.

I just came across this post today and I am very sorry to hear this. Your block was one of the first we ever produced. When we realized that a few of the first blocks had this issue we had the oil feed holes to the heads professionaly sleeved but needless to say we didn't catch this one. We sat down with Roush to see what was causing the issue. We soon realized that the drilled holes needed to be angled out towards the valley of the block and more centered to the cast bosses in the valley by what the cutaway sections told us. As far as the valley being clearanced on one side and not the other....I believe Roush told us that it was from the tool they were using to drill the lifter holes. I know they had trouble cutting those holes because the iron was so hard.
I know this doesn't help your current situation and I'm not sure if your fully aware of mine but if there is something I can help you with or clarify by all means pm me and I will do whatever I can

Steve Koleno