At a stop, the oil pressure gage dances/flutters allot. Is this normal?

 

No it isn't, Check the sensor, that ususally is the cause.

 

Yep. The oil pressure can be low due to a bad oil pump. The oil pump rarely ever craps out though. The most common cause of low oil pressure is bearing clearances, or a spun bearing (or two or three ).

The most common cause of the gauge reading low oil PSI is simply the oil pressure sending unit. And after that, the gauge meter could be faulty.

You can have your oil pressure checked for accuracy with a mechanical oil pressure gauge. Or you can just get a new oil pressure sender. Most likely, like stated by HalfInchWrench, it's usually the sensor.