Engine

I own a 1998 Dodge Avenger Sport, 2.5L V6, with 114,000 miles.
Had the engine rebuilt on 2/8/07 and picked-up car on 2/11/07. The new rebuilt engine has 523 miles on the rebuilt motor. Here is the problem, when you turn key on (but do not start engine) the oil light comes on and stays on. Then when you crank the car it makes a clattering nosie like it is out of oil, but only for a few seconds then the light goes out and the oil pressure goes up. It does run a little rough at first then gets better as you drive. Have been told that it is because the engine does not have 1,000 miles on it yet. Is that correct or is there another problem.


Thank you for any advice.