I have a new engine and my oil sender is not very accurate...I would not worry to much about that
More importantly, I would say is whether or not your turbos can be rebuilt and if you have o-ring failure

 

WHERE IS THE OIL SENDER UNIT LOCATED?????????

 

On the side of the block under the oil filter area...one wire on it.

Usually has a rubber cover...it's roundish.

 

under the oil filter you say? Thank you so much... i was looking all around there lastnight on a hunch, but i couldnt find it. i'm headed out there right now to pull it and see what's going on. thank you again pandaz! -heath

 

ok well i pulled off the wire to the sender unit, and went to unscrew it... i didnt have a wrench big enough (it must be at least a 23/25 mm or something... its big. anyway, i plug it back in and the problem is fixed... it seemed to be a bad connection, i pulled it off again and noticed that the tab had been sanded down before (so obviously this had happend in the past)... ill get some dielectric grease next time im at kragen to make sure this doesnt happen again. thanks for the help guys!

also, i wanted to ask one more question.... im trying to figure out if my turbos need a rebuild: when i let my foot off of the gas at high rpm's i get a puff of smoke doesnt seem to happen unless im under boost (not just revving in the driveway).... im on the highway looking in my rear view mirror so i can never quite tell what color the smoke is. i pulled off the intake piping (before and after the intercooler) and i dont notice much of an oil buildup on the sides of the piping (which i cleaned last time i had all the piping out). my question is then: if one/both of my turbos were bad (causing the smoke puff after letting off the gas) and spewing oil, wouldnt i notice a SIGNIFICANT layer of oil coating all of the intake piping? maybe the turbos arent bad afterall?? but what then would cause the smoking? i know my cat is bad... could that be the cause?? thanks

oh yeah, i was thinking when i first got the car 3 years ago it would do the same thing from time to time. i havent changed the plugs or wires yet since i got it 10K mi. ago (dont flame me its a weekend car and im getting to it soon) but could a crappy spark be a possible cause? hmmm and i seem to get some back firing when the car is running rich (while its warming up)... but i dont remember this happening before. well thats about all symptoms i can think of right now