I had my sensor on the side about where the oil filter went. Wasn't sure what the one on the bottom of the block was

Is this pic helpful ?

after over filling the engine with oil leave it sit for a few hours to give it time for the oil to seep into the pump..

What sense is that next to your oil pressure sensor? And is that a oil temp sensor on the side? (Not the knock sensor)

I believe that is a oil temp sender for the alarm system . http://www.mercruiserparts.com/showS...sp?pn=805605A1 http://www.mercruiserparts.com/Show_...WARNING+SYSTEM Also oil temp showing below remote filter sandwich adapter on the pic .

should be low oil pressure light/buzzer

Ok I got Oil pressure on the gauge on the dash. It's deafly pumping through but it's not coming out the pushrods very well. Only one is dribbling out. Could it be from 25w-40 oil and its 25 degrees out?

most likely
have you been turning the motor over by hand to help it flow thru the lifter journals?is the oil coming out the line on the outside of the filter head?

How much pressure are you seeing on the gauge?

yes,that oil does not flow easily at 25 deg.as mentioned keep priming and turn crankshaft a little .