Quote Originally Posted by shooter1 View Post
More than likely when the top reservoir went low it set off the lube-alert and everything is ok. There was a service bulliten about this same tubing...
The broken hose will not cause the reservoir to become half-full, but this condition can occur easily:

A loose cap on the master oil reservoir will cause the tank to drain as it consumes the oil, without air pressure feeding the master reservoir to push more oil into it. Loosening the cap on the motor's reservoir while running will cause the tank to gradually re-fill. If the tank was ever low at one time, and was not re-filled, the air pocket has nowhere to go. The tank may have been half-full for a long time, but still functioning just fine until a loose main tank cap caused it to drain more.

I'm going to place my bet now:

Your engine doesn't need a re-build. It's fine. A compression test will prove this for sure.
The hose cracked while you were examining the hose before dumping in the extra oil.
After adding the oil, the engine wouldn't run due to a fuel shortage condition caused by the tee fitting sucking air. The extra oil ensured the motor was not damaged.
The oil tank has been low for a while.
IF the oil injection is still working, it might not for long. It should be removed.

-chad