There was a thread a while back that was all about the gauges - and how to have it read more like a gauge instead of an idiot light. I dont have it in front of me but a search should get it. - I found it and brought it to the top look at Fake oil gauge post.
Also check out the singleton site, talk about similar problem and a flush that was done;
Dead Link Removed
I would put a mechanical pressure gauge on it and see what the pressure really is through out the operating range. I would also pull the little extension piece that feeds the OP sender from the engine and clean it and the sender. On my engine the pick up became clogged but the pressure gauge read normal till the very end, wiped out the top end, bottom end seemed to get enough oil- it was in good shape upon disassembly. Unfortunately to pull the pan and clean the pickup or change the oil pump means removing the engine. (too bad the ohv doesnt have a trick two piece pan like the sohc where we could clean the pan and pickup)
Good luck.
[Edited by SteveVB on 06-20-2000 at 06:24 AM]