If anyone needs to know a new Oil Filter Housing runs between 400-500$. A used one from Fastlane (Tri Star) is 150$.
The sender screws in okay but the last set of threads at the final tightening part are the one's involved.
As it turns out, the car is running right now thanks to the tip to use teflon tape on the threads stevelewis's idea....I had to use quite a few wraps (8-10 wraps), but it seems to be holding snug to moderate wrench tightening and certainly cannot be undone by hand right now. Anyone know the torque on this part (can't be that much).
I'm not sure if it will hold long-term like this but at least my daily car is back in business...no other leaks seen so probably no crack in the oil filter housing just a case of stripped threads; I can keep an eye on the gauge but I don't think that it is under that much pressure that it would loosen and fall out on its own.
Anyway, the oil pressure gauge was faulty....the new gauge (I used the Meyle one from performance products ($35)) is reading 2 bar at idle and 3 on accel (similar to previous!)
1) 84 300SD 285K+ Miles (Ver Calif)
2) 84 300SD 175K+ Miles (Ver Federal)