Val:
When it drops, do you hear a ticking or knocking sound from the engine? If not, I would have you replace the oil sending unit. It is an inexpensive part that tells the gauge what the pressure is. It isn't uncommon for them to go bad. It will be located near the oil filter. It will have one wire going to it and unscrews from the engine block.
Let me know if you have other questions.
Joe
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Wednesday, September 16th, 2009 AT 9:36 AM