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Hi (nice to talk to other aussies, seems we both like manual conversions, mine is runing fine now!) Yes, that small unit is the oil spressure switch. on the 3S-FE's they are on the right hand side of the head. Not sure about yours but. You can't wire a gauge into that wire because the unit is just a switch that has only an on or off state, when there's no pressure (less than 7psi) the wire terminal is grounded to earth, thus lighting the light on the dash, when the pressure goes up, it opens. To run a gauge tou will need to put a T-peice in the outlet hole and install the bellows for the gauge. Hope this helps.
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