Here is what I did and what I have now.
Installed an adjustable oil pressure cap thingee I had. Am useing a ball bearing as the pressure seal in the block as Hap recommended.
Neddle no longer jumps around, however.
I have almost 60 lbs at cold and about 40 at idle cold.
At normal running temp I have about 50 lbs and 20 idle, however. When I speed up, when the pressure is at 50 lbs, the pressure goes down a bit to about 40 then stabalizes.
Strange. I think another turn on the pressure adjustment is in order maybe. Seems that this is a very critical adjustment maybe, oh I can crank it up to what ever. First test was 100 lbs cold for only a sec or so.
What you guys think? At least it is not jumping all over the place now.