now that the filter is mentioned. I did not have this problem before the fram filter was on there. I have had a few people advise me not to use the fram filters.
I know there was enough oil in the motor and it wasn't low. I don't know if there could be a problem with sludge slowing it draining back to the pan. are there specific areas I should check?
It didn't look like the pickup was clogged , I even blew air through it after I removed it to check and nothing blew out, if it is clogged then its is not something I can see easy.
I did remove the oil pump to change the pickup tube along with the oil pan just before this problem, because I was putting it in my car from my truck , and there was no oil pump gasket there so I didn't put one on when I reinstalled it. but it had good oil pressure for almost 1,000 miles after that.

I did not check the oil pump drive yet. it has never been out of the motor.

I am thinking that I should plasigage the crank, to see if there is an issue there. and since I am in this far in would there be any reason not to put new rod and main bearings and oil pump in?
and since I am almost sure the heads have never been off the motor since new and its blowing a little smoke I should pull the heads and have them redone, hone the cylinders and put a new set of rings in. I have heard that the cam bearings normally don't go bad, it there any truth to this? it still has the original cam in it and I would be ok with letting it there if there is no reason to change it out.

I also don't want to put new bearings in and still have an oil pressure problem. but I am not sure how to know if I fixed it with out putting it back in my truck and running it.
i will plastigage it , check the oil pump drive and look at the pickup tube again.
how would i check it good for sludge causing the problem? is there a way to flush it out while its on the engine stand?