So just a follow up and might save someone else a alot of aggravation.
So after much frustration including machining new copper washers and then ordering new Rotax washers, and then changing out the fuel line to 3/16" thinking it was the actual line leaking, I finally figured out what is going on. With the naked eye, the surface of the distribution block looks fine. Being at witt's end, I took a photo of the sealing surface. Hard to believe but the iphone saw the problem. At first I thought it was a crack but it appears that it is some kind of a molding, machining, or forging line from when it was machined. You can't even feel it with a fingernail and sure cannot see it. A new block costs $123!!!! so I block sanded the surface, reinstalled, torqued down and no more leak. It must have been just deep enough that the copper washer couldn't fill it. Either way it was a frustrating challenge. fuel block 2.jpg fuel block 3 (2).jpg fuel block 1.jpg
On my new kitfox 4 build, I have moved the coils and modules back to where they wont vibrate, and the fuel and cross over tube moved some as well. Just yesterday, I made up a new manifold for the fuel pump, carb feed, and return line connection. I don't feel so bad that it took an hr, if the new rotax one is $122. Hope it don't leak.... JImChuk