Hey up bud.
Your motor is sounding like a Digifant to me by the year (1990). Digi is 87-88 onwards until about 1992.
The hunting could be a wiring fault. Behind the throttle body there should be a wire with a connector, I think its the idle switch. When I disconnected mine a few years back i used to get your symptoms, revs up and down.
Have a good look at the wire, check for breaks and stuff. Also check there is voltage.
Im not sure about your oil light flickering on, oil pressure?? Maybe there is a wiring fault with that aswell. There are several wires with space connectors that go to the oil cooler, give them the once over too.