I have a 94 Bronco with the 302, it has about 135,000 miles on it. I know that the oil presure gauge isn't really a gauge per se. But is it just an "on/off" thing, like if the engine is producing a pre-determined amount of oil presure, the needle on the gauge just moves somewhere into the "normal" range. Or does it give a rough estimate of the actual oil presure? The reason I ask is that my gauge barely makes it into the "normal" range, the needle will get about halfway between the first "normal range" hash mark, and the "n" in "normal". So I'm a little concerned.

You can try to replace the sender, that may make a difference. when the sender is removed, use a mechanical gauge and check it.

The experience I had with my 1993 F150 XL 4.9 Liter tells me that the oil gauge is an indicator for an on off switch. When the oil switch is closed (there is more than ~ 10 psi oil pressure) voltage is dropped crossed a resistor on the back of the instrument cluster that generates a current to drive the gauges to somewhere around mid scale. The systems seems to be somewhat more temperature sensitive than it should be. I agree with the other post, best thing check it with a real pressure gauge.