Gunny,
I was thinking last night before I drifted off to sleep about your description of the light also coming on when the engine idled very low. That can be telling. First, does your engine tend to idle rough and uneven at lower rpms? If so the increased vibration is making the contact wires shake and that may be where we will find the problem. However, I had a truck show and oil warning light when the rpms dropped low and it was not due to the sending switch or wires. Our engines employ a gear pump located in the lower part of our engine that is driven off the cam shaft and pulls oil up out of the oil pan. The short of it is, there is a direct correlation between engine oil pressure and the gear pump that sends the oil through the motor and the speed at which the gear pump driven. Theoretically, if the rpms drop low enough, the preset pressure sensitivity built into the sending unit will get a reading that is too low for safe operation, and hence a brief blip of the light shows up on your dash. The gear pumps are theoretically designed to pump above what is necessary for safe operation at factory low rpm setting. But in the real world, rpms can drop lower due to old carburetors, bad fuel, loose and warn parts. Thats why you probably have heard the old adage that engines experience their most severe wear at start up when the oil pump has not yet had time to push oil pressures up to safe operating levels. On my Harley, the oil warning light stays on for a very nervous 5 seconds or so at startup. To make a long story short, I was going to also ask the age of the engine (the oil gear pump could be showing some wear) secondly, how old is the engine? When did you last change the oil (has it thinned some) and what weight oil did you use? Was it a 5w-30? I run a 20w-50 in my old 2.25 Petrol because frankly, its a loose motor after 40 years of wear. Finally set your idle a little higher so it doesnt drop too too low.