ok, let me explane.
all the modular engines have a "Oil Pressure Sender" for the gauge in the dash and the "SENDER" is located on the oil filter housing.
the LOS (low oil sensor) used ONLY on 1996 V8 Mustangs is located on the driverside of the engine oil pan. this "SENSOR" trips a low oil light on the dash when the engine gets @1qt low. if you engine is topped-off wth the right amount of oil and the LOS light is still on, the "SENSOR" is bad and should be replaced.