At idle my oil light on the dash comes on, but there's plenty of pressure. This photo shows the gauge on the engine after its all
warmed up. Shouldn't 10lbs be enough to turn the light off?

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What weight of oil you running?

What's your oil temp (estimated) when you are warmed up?

10psi is a bit low I believe, but others will chime in. This thread says 10psi at idle is OK, but if it kept tripping my idiot light, I'd be nervous also.

http://www.914world.com/bbs2/index.php?showtopic=106259

10 Lbs is to low. Kinda a common problem on some engines without the highly recommended crankcase oil modification. I get 20-25 hot idle on my 2.7 after the mod.

Without the mod oil pressure relief valve dumps heated oil right back into the pick up side of oil pump causing crankcase oil temps to run high and subsequent low pressure especially on a hot day.
The modification was permanently adopted on the 3.0 and later engines.

All older 6 cylinder engines usually saw the OP light on at hot idle.

I was led to believe on a six 10psi/1000rpm is normal ,however don't know what the normal pressure at idle is,you have stated that pressure....I have done the oil line restrictor mod as per Waynes book is that what you refer to ? I believe you are maybe talking about something else?,please tell more.
boxterfan you jumped the gun on this one and provided info for a 4cyl engine,billys motor is a six.

It a 79 3.0.

My thinking is that 10psi will still be ok but do you have an increase when u blip the throttle to say 1500 rpm,a quick response in pressure would indicate a good oil pump surely

that sender grounds at about 6 psi....buy a new one they are cheep...

I would cut the filter open and look for excessive deposits,,,new motor you want to be sure all is OK

Talked with the guy who built the engine and he said the break in oil has something to do with this too. He wasn't concerned since it jumps right up with rpm

your still running break in oil ?? you should change it ...