Phil, if you can't get the oil leak stopped, you can use the Right Stuff. I had the same problem and I tried every fukn gasket on the planet. Be prepared to use a crow bar to get the rocker covers off though.
255 with 80's took me well into 6's in the 1/8th with race gas. The 340 might need a larger return line. Some get away without it. Guys on the other board are saying some of the E85 they get is lower. It's a crapshoot. If you're gonna run E85 I'm fairly certain you need bigger lines...and possibly a 450 pump. Cruz and other vendors sell the larger lines. Racetronix is here in Canada in Scarborough. Expect the shipping to be a little slower getting to you.
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