Good logical troubleshooting.
Another useful approach would have been to disconnect the connector from the old oil pressure sender and connect a resistor between the appropriate connector terminal and ground. A 92 ohm resistor (92 ohms is a standard off-the-shelf value) should result in a full scale gauge reading, while zero ohms (a direct short) should produce a gauge reading of zero, and a resistor value in between (e.g. 47 ohms) should produce a mid range reading. If they do, then the problem is the sender. If not, then the problem is in the wiring or in the gauge itself. Divide and conquer.
[This message has been edited by Marvin McInnis (edited 05-02-2010).]