With a bad sending unit could it read a bit low? Mine has been reading a bit low.

What the HELL :?: :?: :?: :?: :?: :?: :?:
EASY
I needed a lift
My hand did not fit, could not turn the damn thing and lot'* of crap in the way
Good luck

Strizzack, I don't think your problem is the sending unit. Sounds like it is reading correctly.
You have an engine problem - but you didnt mention any engine service lights going off. But still, I doubt if its the sending unit.

Okay, the oil pressure guage reads fine when I first get in. The car runs beautifully until the engine warms up the normal temp. Once normal temp is hit, the oil pressure guage has now made its way down into the red zone. Once the needle hits the red zone on the oil pressure guage, the system monitor starts to beep at me, but only when I'm at a complete stop. If I'm at a stop, I can throw it into neutral and hit the gas, this brings the needle out of the red zone. At a complete stop, the car bogs and sometimes dies. Once I begin to accelerate again, the needle comes out of the red zone and drives somewhat normal, but still a little boggy. So my idea is by the time the car is at normal temp, the oil is thinner and the pressure is not there. But what is the faulty part?

It could still be your little friend. The PCM is seeing the oil pressure drop, also. It could be either the sender or even the oil pump.

*urp* Hopefully it'* just a bad sender. (Does that feed the PCM as well, or does the PCM get its signal from a different sender?)

What weight of oil are you using? Maybe going one grade up in oil weight will help a tired oil pump; otherwise you're looking at some surgery here.

PCM gets the signal from the same place. It may be trying to protect the engine by killing it.