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Hi walczyk,
Did you research the best gaskets and seals and such? I'm unsure what is best anymore.
Yep, if conductivity is lost between the oil pressure switch, the oil light stays on.
Yet your alternator is at the driver (car left side - intake port manifold side) at the top. I forget if A/C or the power steering pump is below right now (Ooooh, we have google images search - nope, no help).
If your engine is oil basted, part of the concern is to why, so, a check of the positive ventilation crankcase system. I'm unsure whether you have sieve. If use mineral, and don't change it, the PCV breather flame trap and the oil separator breather box gets coked up. One way to check is to disconnect the PCV pipe at the accordion style air intake pipe right before it secures to the throttle body. Blow through it with the oil fill cap off. Should be easy to exhale through. Restore and re-secure the fill cap, and so long as the oil drain plugs is in, it should be very hard to blow through it at all.
You may want to consider the OEM oil breather separator box and O-ring for replacement.
It can be very dangerous to let oil and oil collected grime form on the engine, more so on Turbos. Engine fire risk.
Cover up holes with plastic wrap and use some Gunk engine bright. Let sit. Hot water helps with a normal pressure hose spray nozzle.
Take a look at the harmonic balancer crank pulley. Check for cracks in the bushing material between the outer and center cast steel parts.
Else, well, I dunno. Motor mounts? Transmission mount? As your budget allows.
Seem like you have some work to do.
Wish I had a garage. I have a cylinder head gasket and one or more exhaust gaskets in need of replacement on the 1990 240 DL "li'l red" Wagon, with M47 II glass-geared transmission and all body panels in different red hues. Like to do so before it gets to a point what you are encountering. Oh well.
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