On the gasket there is a small hole for the water jacket but on the head and block there is a big hole. I would think that would block a lot of water from passing through the heads to the block??? I have pictures incase I was too confusing. The hole I’m talking about on the head gasket is marked by a yellow circle, and the hole for the block is marked with a red circle.

 

Engine block

 

Perfectly normal.

 

I think I see 7733pt2 on there. Those are them.

 

Yeah, that's probably the most common 350 head gasket there is. They should be fine the way they are. The only Gen I sbc that really requires a "special" head gasket is the 400 motors, due to the larger bore and the steam ports between the cylinders.

 

The holes in the head gaskets are used to regulate and direct the water flow, to make it go evenly throughout the engine except where deliberately concentrated.

Without them, the water would just go through whichever part was the easiest; not necessarily where needed the most.

You'll probably notice that there are either 3 holes or 1 large one at "the hot spot", between the 2 center cylinders under the 2 exhaust ports right next to each other... that'll give you some idea as to how that all works.