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Specific to the symptoms you give - it is the harness that runs under the front of the engine. The other posts are correct - up until 1988 the harness beginning at the 1"x2" connector on the firewall is a F disaster.
In your case: The oil light comes on when the lead to the sensor is grounded. The sensor grounds when there's no pressure - but if the wire get shorted to ground elsewhere you get the light. The harness under the engine front has two bendable metal clips to hold it in place, and over the years they can chafe all the way through to the wire conductors inside. Thus your oil light.
The alternator needs a little voltage to create current, and that thin red wire on the back provides it. When it gets grounded out or is disconnected, you get no charging. The fat red wire on the alternator carries the full charging current to the battery via the starter. It seldom goes bad, but if you go into the harness check it for really good insulation, it is ALWAYS hot and a ground short is a fire hazard.
The harness can be redone, or you can by-pass the faulty wires. They both originate at the 1"x2" connector. The red and the black ones. Many owners have just run new wires from the connector along the firewall and fender down to the oil sensor and alternator. Seems quite easy.
Good Luck,
Bob
:>)
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