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The oil pressure and temp gauges are grounded through the threads. Teflon tape would probably interfere, but the threading action probably has cut the tape enough for a circuit. You can check the ground resistance between the sensor just above the threads and the block. Teflon tape isn't supposed to seal a threaded connection, it's lubricant.
I mentioned a poor ground, but it wouldn't hurt to check the positive connections at the solenoid, battery and disconnect through the firewall. I recall that this connection sometimes corrodes.
Terry64HT
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