the best way to find out what is really going on is either take it to a shop and get them to test your pressure or buy a new real guage. The guage you have is just as good as an oil light. just dont mess around too long... Oh and if u do have to get a new motor that would be a good excuse (to mom and dad or the wife or w/e) to get a H.O.(high output) motor. get a 351 H.o. the 302 motor u have in there now might have 180 hp.Stock.

good luck