Hey bud, yesterday pj reminded me of a Service bulletin update about the oil pickup. you may want to check it out before you install the engine in the frame. From the pic of yours I found, I can't tell if you got the old crappy style or the new improved style. Of course I have the old style inside my engine...so went to ebay and got the new one ordered.
heres my blog post.
http://www.hondabrat.com/2013/12/honda-cb360-oil-pickup-possible-failure.html
PJs dtt post
http://www.dotheton.com/forum/index.php?topic=52471.msg586853#msg586853