Well the cap plug was indeed too shallow. When it was reassembled, I began priming and received an oil wash within 5 seconds from the oil sensor plug. After I put the sensor in the location I did it again, and the oil filter began gushing, so I will address that tomorrow by checking the oil filter galley plug. It could also be just a loose filter connector, but regardless, it is fixed.

 

The last illustration to this post is correct from what I've seen and read. never replaced that plug myself.

 

Yeah, that's the right position. It's a small cup plug that will only drive in so far from the bottom but it must be there.
I reread your post and see your also going to install a 5.9. Are you going to carb it or fuel inject? I just got a 5.9 and am ready to send it to the machine shop to check it out but trying to figure out what kind of ecm I need to upgrade to or if I need to at all?

 

https://dodgeforum.com/forum/1st-gen...read-carb.html

https://dodgeforum.com/forum/1st-gen...ert-build.html