The 261 has siamesed cylinders and has steam holes drilled in the head for that reason. Many people use a 235 head but drill those steam holes using a 261 head gasket as a template. It is all in the article mentioned earlier.
The article says nothing about drilling the steam holes. Examine your 261 head and you will notice the steam holes are drilled on a 12 degree angle from the head face. If they are drilled straight in using a gasket as a template there is a good chance that 3 of them will not intersect the jacket and be of no use. If you have drilled in 7/8" and still not broken thru you are drilling into the port roof and may ruin it all together. In some places this process contains high drama... Here's a quote from the pre 1958 driveline forum at Canadian Poncho:
What ever you do DO NOT USE A 235 HEAD ON A 261 BLOCK! Do not, do not, do not do it brother. If you do you will be crying, kicking and doing a lot of swearing. The 261 had steam holes that surrounded the bores and also had steam holes that matched up on the cylinder head. The 235 did not have these holes in either the block or head. The 235 head will bolt up but, and here is the BIG BUT! Your motor will over heat real bad my brother. 261 motors ran hot normally, hotter than the 235 because the 261 not only had a bigger bore it also had a higher compression. This is the reason and only reason for the steam holes. Let me repeat myself DO NOT PUT A 235 HEAD ON A 261 BLOCK OR YOU WILL BE CRYING LIKE A LITTLE GIRL. That sweet motor will over heat real bad and then blow. You can drill the 235 head by using the 261 head gasket as a template. The only thing is you have to drill on a angle and unless you know what you are doing you will ruin the 235 head. Best thing is to just use the correct 261 head. I sure hope you are taking me seriously because if not you have my condolences on that sweet 261 of yours. I love these motors and have one in my 1957 Pontiac. Check out my 261 and my 57 Pontiac in Members Rides under "My 57 Ride". Good luck with your sweet ride. Cheers. George.