318 runs great...but low oil psi...is it ok?

How high does it get when you are on the throtle hard? 25 would be low at 5000 RPM but ok for normmal driving. How many miles on the motor? What pressue do you have with a cold engine? If it's signifigantly higher cold you might try going with strait 30 or 40 wt or perhaps 20W50. Worst case you can drop the pan and change the oil pump and also the bearings if needed without pulling motor.