oil bypass valve is like Tarm mentioned. Spring, plate, washer and clip. Moves freely pops back when pushed.
The oil regulator is quiet stiff. I can push it down on the spring but its very notchy it can stick but seems to sitting in the up position. How do you get the sucker out[/QUOTE
Brian,
Its a spring tension spool valve type deal.
To remove the valve you need to remove the oil cooler. Then you will see there is a snap ring holding it in place. Remove it and it will come out with needle nose or turn it over. Now on the older units I believe the units are staked in. These are the ones I have seen posts about them having issue. Sometimes falling out when the cooler is removed. Also as you mentioned it seems to be able to get stuck that seems to also happen and causes low LPOS pressure issues.
Here is some pics I found on the net and uploaded.
If this valve fails or gets stuck somewhere in between you will have no oil pressure registering on the gauge until you get into higher rpms with low injector demand if at all.. This is why I thought its was something to check. The spring could be
I have not done it on a 7.3 but you can shim the spring to allow for higher psi if you have enough volume of course. Same can be done with the oil filter bypass to prevent it from bypassing to a slightly higher pressure.
From the looks of it drill and tap a couple basic parts etc you could even make an adjustable setup. Then you could have adj pressure regulator for the LPOS./ At least it looks that way to me.