Hi, wondered if anyone can help me cos i'm banging my head against a brickwall!

I have a 1997 P reg gti 2.0l 8v and the problem i'm having is that the car keeps cutting out on me, it doesnt matter if i'm travelling at speed or not (infact its just happened while I was on the dartford crossing bridge at 5pm! very scarey) When it cuts out the oil light flashes and the rev counter goes straight to zero, now somtimes it will start straight away and somtimes it takes ages to start, when it doesnt start, the engine turns over as normal but the oil light flashes.
Now the first thing I checked was the Oil (duh!) But the oil is ok, when i take the oil filler cap of, there is presure there so I think the oil pump is ok, and I dont think its an oil problem cos if there was a problem surley it would do it all the time, somtimes its weeks before it would cut out and somtimes it does it several times a day! I once went to a party when I met a guy who is a salesman for vw, and he reckons its the hall effect sensor, now I dont know wether this is true, after all he just sells the dam things!
Please can anyone help me?