Well..............it
WAS the frigging gauge.
On the top of the Autometer fuel pressure gauge there is a little rubber disc with a pin in the center of it.
I went over the whole backend of the car, made sure everything was properly reinstalled. Fired up the car and let it idle. Fuel pressure was initially at 6psi, just like it should be. Then after 10-15 minutes of idling it started dropping just like before. I grabbed the head of the pin on the gauge and it immediately snapped back to 6psi. So........there it is. A $190 lesson on how liquid filled fuel pressure gauges work.
Aside from a valuable lesson, I found some issues that surely would have reared their ugly head down the road anyway. So it made this exercise somewhat worth while.
Earlier in this thread, the spot that Sieg posted a picture of on his car, there is a similar rubber fuel hose transition between the sending unit hard line and the rear section of hardline on a 2nd Gen as well. The 4" section of hose was hard as a rock. So I replaced that with better quality material from Earl's. Then under the passenger side, where the fuel line runs along the frame rail the is an identical transition - same deal there, rubber fuel line was also compromised so I replaced that as well.
Then while swapping out the sending unit I noticed the ground wire had been pinched between the tank and the body and was smashed completely flat with the casing split. So that was taken car of when I installed the new sending unit which came with a new ground wire.
Now to finish the lesson, I'm going to run down to Advance Auto and pick up a cheap Mr.Gasket non-filled fuel pressure gauge and install it and stand back and be amazed.
Thanks to all that posted to this thread!!