Well the problem is solved.  It wasn't the oil pressure at all.  Seems that
the distributor cap was arcing through to the clip on an intermittant basis.
This was being picked up by the oil pressure wire and was being radiated
into the driver chip in the instrument cluster and causing the LED to flash.
For those of you with the flashing LED and you have not been able to find
the problem, you might check out your ignition wires, the sense wire routing
and the distributor cap.  Could be you are picking up a signal that is being
injected on the sense wire.

William