There should be two "switches" on the engine... a low pressure switch for idle up to 2000 rpm or so and a high pressure switch for everything above that.The low pressure switch has a limit of around 5-7psi (I believe), so if you go below that at idle, it'll blink or stay on. If your light/buzzer goes on when your rev the engine (above 2k) normally, that's a wiring / sender problem with the high pressure switch.The sender that we'll be using in the side of the head should have two poles as you said... one for the gauge output and one for the "idiot light".Is it possible that your wiring got switched or there's a problem with the sender?
what if the switch in the pressure sending unit is for the high pressure side?