Buzzing and Flashing Red Oil Light

Hey

my car for the last few months has been buzzing and flashing a red oil light, its on and off. say will start if been driving for more than 20 minutes and then it will stay on till i have stopped for a while. theres oil in the car but its not sounding to healthy. i did have one big smoke out but asumed this might be bad oil/petrol.  i do sometimes get an oily smell. but i didnt think it could be a head gasket problem as the car seems ok to start!!!! oh so confusing! anyone help?  

my bro just popped over and we took it to someone that knows abit about cars. and they think the bottom end has gone. its rattling about 3000rpm oh god new engine i think, anyone know anythink about this? i got a clipper is it easy to change the engine to something quicker or am i best of putting the same back in? cheers

I had this trouble with a Mk2 I had a few years ago and after ignoring it for a while decided to get it checked out. The oil pump had failed so although there was oil in there it wasn't protecting anything. The long and short of was that I did indeed need a new bottom end!

I realise this isn't much help to you but will just confirm what you already know. I bought a reconditioned engine and had it fitted which worked fine until the car was wiped out by a large truck about four years later!