Michael, Core Plugs / Freeze plugs can and do just fall out. It's not uncommon in 350's. I've seen it in everything from the previously mentioned 350's, all the way up to Range Rovers and BMW's. It's just kind of a bad luck thing if it happens to you and you don't catch it. I've had a 2 seperate race motors that it happened to, 1 I caught as I was pulling out of the shop onto the trailer.... the other, not so lucky. Mine didn't fall out on the boat until this 4th of July weekend on the second day out on the water last year. Luckily I keep a watchful eye on my guages, and saw my engine temp starting to climb slightly. I thought I had lost the impeller. Opened the hatch and saw water pouring out the block, then saw the plug floating.
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