Sounds like the motors just set up on the loose side. Don't forget, you don't need a ton of oil pressure at 650 RPM (I wouldn't let it idle that low). I drove a 406 FE motor that was set up on the loose side, and had pressure just about like yours ... i drove the crap out of it for about 6 years, and it had very little wear when i finally took it apart and sold it for parts.
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