Hi,
20W-50 mineral-based oil is fine for these engines.
The oil pressure sensor is under the induction system (that is, laft had side when standing at front of car and facing engine). just forward of the oil filter. It's a small plug thing with a wire that attaches to it.
If you haven't got one, get a genuine Toyota oil filter. They get up to pressure quicker than the non-genuine items.
Check the wire to the sensor in case the connector has slipped off. The actual sender unit is pretty robust. They can still be purchased from Toyota. Also, it could be the gauge that is stuffed... but this is pretty rare.
seeyuzz
river
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