I had this same problem when i ran the Holley red pump and regulator. I was chasing the pressure all over the place. (car ran fine regardless). I did however, have the cheap-*** skummit liquid filled fuel pressure gauge (was the cheapest they had). That might have been the problem all along. Anyhow, i pulled the red pump out and ran a blue pump that delivers 7psi. I dont run the gauge either nor the regulator. I dont race at all, if that helps.
In the end, I wouldnt say Holley regs are **** since I didn't really troubleshoot and confirm that it was the problem. However if I find something comparable, I'd give it a shot instead.
Cooter