Make sure the car is full of oil. Dont run it for very long until you get this fixed or you know for a fact that the motor has good pressure. Try a different sender. If that doesnt work then I would just get an Autometer oil pressure gauge.
Tranny knocking? I assume its a R154(turbo 5-speed). I've never heard of a tranny knocking. You can easly trouble shoot it. If it knocks when you rev it and when your driving then its not your trans.
Dont forget to reset the ECU before you start the car with the new downpipe. Your car might not run very well for a few minutes but the ECU will learn new maps and you should be good to go.
My buddy was arguing with about seeing lots of TT mk3 manifolds on ebay, i didnt believe him because the idea seemed so irrelevent. But sure enough he was right. A single is a much easier install, cheaper, and makes more power than twins.
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