Did you remove oil sending unit and install a oil pressure gauge in it's place and read it so you can rule out the gauge in the dash and sending unit ? If not, then do it.
Then if you don't have oil pressure. Remove the oil pan and check the oil pump pick-up screen to see if it is stoped up, if it is replace oil pump and screen. If it's not then replace oil pump and screen anyway.
The 305 can actually run and drive on a low as 5psi of oil pressure anything lower you're in trouble. A 305 should typically have anywhere from 40 to 15psi to be in excellent running condition.
The normal oil pressure on a GM 305 engine is between 40 and 60 PSI depending on the model year. High oil pressure is needed to allow for proper circulation through the engine.
No it will not. Unless the oil pressure is low on the 350 engine. If you had good oil pressure in the 305, and the 350 don't then there is something wrong with the 350. Bad oil pump, engine bearings worn out, Oil pump pick-up screen stoped up. Things like that cause low oil pressure.
rigth behind the distributor.
It is behind the distributor at the firewall.
OIL PRESSURE SENDING UNIT
IT takes 7lbs. to keep the oil light out at a idle. It should have at lest 25lbs.to 30lbs. of oil pressure at or above 2500 rpms. If it has more that is fine to.
On the drivers side of the block, right above the oil filter.
Right behind the distributor on the engine block.
most likely a sending unit problem
over full or wrong oil filter
The oil pressure may vary depend on mileage. However, typically on a 1988 GM engine should be around 14.25 ohms or more.