The oil isn't reaching my gauge, it's about a foot back because there's a pocket of air between the oil and the gauge. But the gauge reads pressure and I'm thinking psi is psi....the air in there wouldn't effect the reading would it? I thought about purging it but then air will just get back up in there from the atmospheric pressure in the engine when not running.

 

Shouldn't mess up a steady pressure reading. But it'll make the gauge more sluggish when your oil pressure changes.

 

I have bubbles in mine when its running, seems ok to me.