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I have recently rebuilt my 1.9L motor in my GT. After reinstalling the motor the oil pressure has been off. The oil gauge in the car reads about 2 when the car is first started and then when the motor warms up it drops to about nothing and motor starts knocking.

I have installed a new pump cover, with the correct oil pump gasket and the gears are with in spec.

I installed a oil pressure gauge and at hot idle it reads 10 to 12 lbs. If you take the motor up to about 2000rpm the dash gauge will read about 2 and the manual gauge reads about 30lbs.

Can some one help me with what I should be checking next?
 

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low oil pressure

I hope that, during your rebuild, you checked the engine bearing clearances. Green plasticgage has always worked for me, and is an inexpensive way to do it. As I'm sure you know, main and cam bearings out of spec will result in low oil pressure, and yours sounds extremely low. I also hope that bearings aren't the problem, since you've already installed the engine. Good luck.
 

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my dad had this with a small block chevy, he didn't get the final cam bearing in far enough so it allowed oil to fall back to the pan rather than feeding most of the engine. He tore it down with about 40 miles on it and the bearings looked like 40,000 miles. He thought his gauge was off since he never saw it work... bought the truck with a bad motor. Tapped the bearing in the rest of the way with his cam bearing installer and it has been running stong since. It will need new bearings and possibly a valve job much sooner than it should though.
 
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