My car is knocking. My oil pressure is flying all over it burys way past 60 then drops down to like 30. I looked under my car tonight and this part was on fire right above the oil filter and next to the Oxygen sensor can anyone help me out or at least tell me what that part is? theres i think 2 wires coming outta it and it goes into my block

 

Sounds like the oil pressure switch.

 

Ok so i was driving the car today and the oil just droped and my car car died cant get it started? could that be the oil pressure switch?

 

The oil pressure switch powers the fuel pump if the fuel pump relay fails. If both of them failed, you could have the problem you describe. It sounds like you might have even bigger problems though.

 

like what bigger problems? spun rod bearing and others

 

i jumped the fuel relay found out that was blown also the oil switch set on fire. If the oil switch is non working could that cause a knock?

 

No, but if the oil pressure switch was working but the fuel pump relay wasn't and the car shut down because of no oil pressure, that would certainly cause a knock.

 

Could also be the Oil Pressure Sensor for the dash gauge. Camaros had I think three locations for this sensor. My friend's 91 RS v6 MPFI has it screwed in at the base of the oil filter.

Anyone else think this looks like:
1.) Bad FP relay
and
2.) Failing Oil pump