Do I Need a New Camshaft?

Just a quick update: Ran over this morning to Harbor Freight to pick up a manual oil pressure kit. I have not installed it yet. On the way home I drove on the highway again at 70mph to see if I could reproduce the low oil pressure problem when I came to a stop light. It would seem that the oil change made a difference. No check engine gauge light and the oil pressure stayed rock solid the entire time. Obviously I am going to drive it some more and see if the problem is really gone.

One question I have: Can I get a "T" fitting to put on the engine block so I can monitor the manual oil pressure gauge I just bought at Harbor Freight as well as the "dummy" gauge on the dash? This way, if the check gauge light does come on, I can see the actual oil pressure on the manual gauge.

Yes
 
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Be very,very careful routing that line. And i wouldn't permanently mount a harbor freight. If the line blows you can make a giant mess in your jeep or blow the motor/catch fire if it sprays in the engine bay and you don't notice
 
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I would install the mechanical run it for a couple of days and watch your pressure when it's running at highway speeds for a decent amount of time, in town, etc... and if all seems fine then I would just hook the oil pressure sender back up and forget about it!
 
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Just a quick update: Ran over this morning to Harbor Freight to pick up a manual oil pressure kit. I have not installed it yet. On the way home I drove on the highway again at 70mph to see if I could reproduce the low oil pressure problem when I came to a stop light. It would seem that the oil change made a difference. No check engine gauge light and the oil pressure stayed rock solid the entire time. Obviously I am going to drive it some more and see if the problem is really gone.

One question I have: Can I get a "T" fitting to put on the engine block so I can monitor the manual oil pressure gauge I just bought at Harbor Freight as well as the "dummy" gauge on the dash? This way, if the check gauge light does come on, I can see the actual oil pressure on the manual gauge.

Yes.

Let us know your findings.
 
On my third oil pressure sender unit and I'm seeing the fluctuation in pressure as well at idle when warm. Hoping for good news and it is not the bearings...