Sounds like this engine is a prime candidate for a complete bottom-up rebuild.

 

I really hope we dont have to do that, its a very last resort.

So the FSM(factory service manual) says to prime pump oil by pouring some engine oil into the pump gears...nothing more. Seems like sometimes this works and sometimes it doesnt. I tried to get to the dist. but thats gonna be a bitch and a half, do i really have to?

 

if the screen in the pickup tube is partially clogged, it may explain the drop in oil psi when your getting on the skinny pedal, as the pump spins faster, its gonna want more oil, but the pickup tube can only flow so fast when there is a blockage, and flow cavitates, causing a drop in pressure

 

priming the pump is just pouring oil into the top of it and filling the pump cavity. don't remove the distributor. when installing it, sort of hold it level while you crawl under the truck, otherwise the oil will pour out all over you. when you install it, be gentle with lining up and seating the distributor shaft. wiggle the pump back and forth so that it sits flat on the block with no force. double check that your pickup tube is square to the bottom of the pan.

 

Thats what i did earlier today, but didn't want to button it up until i was sure the process was correct. i bet all the oil has dripped out by now