You could tell people that the light is the 'has oil' light instead of 'no oil 
pressure' ;)

I believe that an oil pressure sending unit functions the same as a fuel 
sending unit - a different reading will result in different resistance to 
ground. The gauge (or idiot light) reads this resistance and displays a 
corresponding value.

You should be able to test a few things - try unhooking the wire from the 
sending unit and grounding it to see what happens with the light. This should 
work with the key in, engine off. 

Here is a write up I found about one type of oil pressure sending unit (3-wire):
http://www.racepak.com/forums/viewtopic.php?f=2&t=801

Here is a quick write up about a one-wire sending unit:
http://www.rx7club.com/showthread.php?t=746600

Once you know what type you've got, you should be able to 'bench' test each 
component separately. 

It sounds like you've already done a lot of work on this. There is always a 
chance the 'new' sending unit is bad, or that a wire is grounded out causing 
the light to think zero pressure, but it may also be a blocked oil passage in 
the block.

Soo... you're sure that the oil is flowing, right? I'd imagine you'd know 
within about five minutes if the motor stops running. You should be able to run 
it with the valve cover off, and see the oil flow. (although your bike may be 
different than my 350).

Good luck and keep us updated!

 - JO

On Jun 18, 2011, at 10:01 PM, Mt.-n-Man Chia Bar wrote:

> I have also put in a new filter and now have checked the wires and
> they are fine. what is next??????????
> 
> On Jun 18, 8:07 pm, "Mt.-n-Man Chia Bar" <[email protected]> wrote:
>> Hi,
>> 
>> I am new to this club. I have a 85 cb700sc. I had a bad bearing so i
>> found a parts bike that ran with no problems. I put the motor in the
>> registered bike and after runing for about a min. the oil light came
>> on. I thought that it might be the oil sending unit chaged it then
>> maybe the pump changed it, changed the pick up filter and the presure
>> relief valve.
>> 
>> I still have the oil presure light on after all that work any
>> suggestion as to what to do next? Could it be the wire from the oil
>> sending unit? Or the filter which is new?
>> 
>> Thank you bfor your help
>> 
>> Brian
> 
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