Hi all,

Newbie here. I kind of lucked into a straight '85 325e with 325 K miles. It was sitting 1 year idle in CA in my customers driveway due to smog issues. I live in OR where we do not require smog checks, so I gave her 500 for it and registered it in OR. Her husband now deceased bought it new and always had it up to par. He gave the car to his son who experienced a coolant leak on the freeway and I don't think he knew to shut her down immediately. The head leaks oil from center both sides. No coolant in oil and the darn thing runs great, always starts and idles great. Just leaks oil. The car is clean inside, almost everything works, I have fixed a few things, the A C is out, and it needs paint.
I already bought a used very good replacement head checked out by a local machine shop. I also bought a new water pump, timing belt, head gasket and all the associated gaskets for a future head replacement, or to sell as is with new parts. After looking through the old receipts going back to '85, I found one that recommended a replacement engine at about 240K miles. Reason mechanic gave was he could not adjust valves due to excessive ware. I never found the receipt for the replacement but figure the work had to have gotten done by it having 325k miles at time I got it. B T W I was told the auto trans was rebuilt 3 years ago and it does seem tight and shifts smoothly.
Here is my question, and thanks in advance for your recommendations. When the car is warm and I stop at a stop sign or light, the oil light may flicker while idling.Not when cold. Are the bearings shot? is the oil pump shot? I wish I had the history of this possibly used or original engine block. Did the previous owner get it rebuilt? I don't want to do the new head work if the same thing happens after the rebuild. I have not replaced the oil sending unit but figured it either works or it doesn't. Any thoughts?
thanks much Kerry