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With the oil pressure fluctuating at idle indicates bad main bearings as well.
I say do a R&R and swap out the engines. Pull the rear diff on the '85 as well and install on the SD. You will need the axle shims from the '85.
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RRGrassi
70's Southern Pacific #5608 Fairmont A-4 MOW car
13 VW JSW 2.0 TDI 193K, Tuned with DPF and EGR Delete.
99 W210 E300 Turbo Diesel, chipped, DPF/Converter Delete. Still needs EGR Delete, 232K
90 Dodge D250 5.9 Cummins/5 speed. 400K
Gone and still missed...1982 w123 300D, 1991 w124 300D
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