Honestly it sounds like your Oil pressure sending unit burst. While I had my trans. dropped I decided to change it because that's where my oil leak was from. Its located behind the the distributor so with out the trans being dropped I'm going to guarantee you its a PITA to get out.
1994 Jeep Grand Cherokee 5.2L V8- NV3500 - Blown D35 8.8 replacement some day.
2010 Jeep Patriot 5 speed manual-- DD, 27-31MPG :D
1996 Dodge Ram 1500 - Work Truck/Plow 5.2L NV3500
2005 Nissan Titan - Hauler
"The Jeep is Americas only real sports car!" - Enzo Ferrari