So after wasting my time rebuilding the engine i noticed today that the engine was getting hot and turned it off. I took off the valve cover and noticed this hole in the head. What could have caused this??!!

 

It is a normal "as cast" drain back passage for oil. It is NOT a cracked head... at least not there anyway.

 

i have coolant all in the oil. Oil in the cylinders. It idles fine and starts right up, but it gets hot fast.

 

I wasn't suggesting that you don't have a problem... as in you aren't overheating. I simply stated that the area that you circled in the photo you posted is NOT your problem. So if you are mixing fluids, you have a head gasket, head crack, or a head surface/block surface issue.

What kind of head gasket did you use ? Who did the machine work on the head/block ?

 

Machine work was done at TEM, cylinders were bored .5mm over, head and block resurfaced, all clearances checked, new valve seals, all new gaskets. I used fel-pro head gasket, I drained the oil, dropped the pan and saw metal in the oil. I drained the radiator and put everything back.. tightened everything bak and started it up. Ran it for about 20-30min. I have zero smoke out the exhaust, idle stays even around 800rpm, I revd it a few times and pulled the spark plugs. They came back dry, everything seems to be running fine.

 

That's a good sign... keep an eye on it for a while, and if things stay as they are now, stop worrying and enjoy it.

 

The over heating issue is still there. I did a jumper at the fan switch and the fan turns on so I replaced the fan switch thinking that was why it wouldn’t turn on..but after idling with the heater on full blast the fan still won’t turn on. I’m at a complete loss! It did turn on for maybe 1 second but went off again..if I jumper the fan I don’t have overheating issues. What would be a downside of running the fan 100% of the time?

 

You either still have air trapped in the system or you have a shitty aftermarket thermostat. Fix these two issues and you will not have to keep your fan running full time. If you do choose to run the fan full time when the car is on, the major down side is you will burn up fan motors more often than you expect.

 

Well the fan works now after 2 bad fan switches. But I def have oil in the coolant, but no coolant in the oil. I have torqued everything down to spec and have new OEM seals everywhere. Any idea what would cause this?