OK, I was able to get the lower tube out by threading a 5/16" bolt and prying it out.
At first I thought there was a piece of the old tube stuck in the hole because I saw a 'step' about 1/2" down the hole (this is where the lower tube stopped as well- I never had it seated fully).
In an attempt to get the (non-existing) piece of tube out, I tried running a 7/16-20 tap down the hole to thread the piece and pull it out.
Upon closer examination, it doesn't appear to be a piece of tube but rather a step in the hole that I can't seem to get either the upper or lower tube past.
Has anyone run into this? Is there in fact a step 1/2 way down the hole that closes the diameter of the hole?
I have attached pictures. Since the motor is sitting in my 69' Vette, it's hard to get a good straight look at it. The threaded part is actually the lower half of the hole (DuOH!) that I can seem to get either tube past.
Any suggestions would be greatly appreciated.