A-wooo ouch, might pull your sender and screw in a manual guage right at the block and leave the new system hooked up. Compare the two readings, see which one make the most sense. Is the motor making noise? Did you thrash it hard last night? It is possible to have a oil pump go bad, very common especially if the engine is a high miler. 
I hope it is the new guage going bad and not tyhe pump, much easier to fix.. Mac
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393,9.5" 351W,830 Holley,Victor Jr,Home made Cool Air Pan,
Pro Billet MSD,
MSD 6AL,
XE 284H Xtr-Com cam,
240-246 @.050,
540-544,
M/T Et streets,
Mac Upper and Lower, Control Arms,
3:73 US Gear,Mini Spool,
Eagle Long rods,
Mac Windage tray,
KB Pistons,
Scat crank,
4000 rpm stall convertor,
C-4 trans,
Airflow Research 185cc,
Hooker long tubes 3", exhaust,
S&W 6 point roll cage,
11.2 at 121 mph.
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