Valve cover clearance with baffle still on!!

you can buy valve cover spacers if you are really set on running the ones you have but they can be expensive. You need that baffle in there, you'lll be fighting the oil problem forever if you don't. I know, I went through the same thing. You may have to go to a set of tall TFS, Ford Racing valve covers, or fabricated valve covers to clear. Then you maybe faced with an intake spacer for your Holley. I had to use a 1" spacer with my Performer II. I also had to go with the Ford Racing VC's becasue of the way they were contoured at the ends and would clear the rubber elbow on my power pipe. So be careful of that.

or if the needed space is minimal, you can double up on the thick VC gaskets too. But you need that baffle.