Would this pit/hole effect the functionality of the cylinder head?

[SpaceToaster]

Ive been cleaning and inspecting the head to see if it needs replaced and am wondering if this pit could be part of what was causing my problems with oil leakage:

[timsrv]

I wouldn't condemn the head due to that. That particular spot doesn't matter as there is no seal there anyhow (it aligns with a coolant port in the block & is probably why it eroded there). Still, I would ask your machinist to have a good look at it as I can't tell from the pics how deep it goes, but I'm assuming it's only 1/8" or less. Tim