i think you need to run the bigger oil pump (if the motor doesn't already have the 36mm gear one) as hydraulic lifter engines do use more oil psi. mech engines tend to have higher oil psi.you only need to block the hole on the block when using a non mech gasket (adapding the 1.9 stronger metal head gasket to a mechanical lifter 1.6 engine). i doubt you need to block the oil drain as its a good idea to have with a hydraulic head (especially with the extra oil flow)