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If Dave's suggestions of cleaning up the wires around the switch don't work, there are 3 possibilities:
1) The short is upstream in the harness. If this is the case, disconnect the connector from the switch and tape it to the end of the switch. This keeps the harness in the same approximate position as when it's connected. If the short is upstream in the harness, then the dash light will still come on in the same way when you hit the top end of each gear.
2) There really is an oil pressure problem. The definitive test for this from what I've heard is to connect a pressure guage in place of the switch. Minimum pressure at 2000 rpm should be 36 psi; maximum at any speed should be 87 psi(Bentley). Apparantly some test sets allow viewingfrom the passenger compartment while driving, in which case you could test at the top of each gear.
3) The oil switch is faulty. If Dave's suggestions or #1) don't point out the problem, you may just want to try replacing the switch instead of trying to arrange a pressure guage. I believe you can get one online for about $10. A 15/16" deep socket makes the job a breeze - 5 minutes. If this doesn't solve it though, and you're sure there is no harness short, you'll have to go back to the pressure test.
I just replaced my oil switch, and it fixed an intermittent flashing oil light problem. In my case the problem was more obviously the switch, as it would not be on at all, then stopping and restarting the engine would bring it on full. Then it started leaking.
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