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It doesn't sound like the hole you describe is the problem since the hole in the old gasket is the same size. 351C head gaskets are very easy to install backward - you sure you have them in the right way? They should be labeled "TOP" clearly on one side, make sure that faces up when you install them.
I sure wouldn't drill that hole out with the engine is assembled, if that's what you mean (which I doubt). Little bits of gasket debris can wreak havoc inside the engine. If you're going to take it apart again anyway, triple check that you have the gaskets in correctly, it's REALLY easy to make a mistake.
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