There is a very narrow surface on the flange where there are no bolts and there is a cutout for the oil filter. This is where the oil is coming from. I have to remove the oil filter to seal that area. I used a different pan gasket this time and it did not seal in that area.
Last night I went and purchased a new K&N oil filter and put that on. For many years I have used AC Delco oil filters, which work just fine. I thought that may have been the source of the leak, but it is not from the filter. Today, when I started up, I had the same problem with the K&N in place. This leak is double trouble. It leaks down on the header and causes a lot of smoke, plus it drips real close to the path of the left slick.
The engine started up right away today and ran very well. Adjusted the carb and checked the trans fluid with the car idling, in park and sitting level.