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Mark,
The fact that your engine idles without shutting down allows for some hope that your indicating system is not functioning properly. The oil safety switches used by Universal were mostly in the range of 15 psi and the switches shown in our online catalog close at 10 psi. Either of these switches should have shut you down, especially if you have an original Universal switch.
The other obvious reason for hope is that your engine is still operating normally with what would, in most cases, be a dangerously low oil pressure. This of course raises the question of how long your pressure has been in this range.
There is very little that can be done externally to the engine (other than what you've already done) if it turns out that your oil pressure really is as low as yours is indicating. It's also difficult to differentiate between the different possible causes of the low oil pressure. I can say that your pressures are consistent with what we would expect if we inadvertently left out one of the internal oil galley plugs in the course of a rebuild.
I'm attaching a recent Q & A on the subject of changing a rear oil seal.
Don
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