I have a 1600 dual port with webber progressive carby 009 distributor, appears to run well, no rattles, noises , good power, temperatures climbs to 110 plus and oil pressure drops off to nearly zero. Engine has been sitting and has been just put back on road, has had oil changed and has new Mobil 1 oil in. Please help.

I believe that Mobil 1 oil is too thin and will thin out when hot and You will lose oil pressure...
I was going to run Castrol Magnatek in My Beetle but Castrol recommend Castrol GTX 2 for air cooled engines...
Anyone who has used Mobil one or other synthetic oil has found they leak rather badly...

Oil also is a vital cooler in air cooled engines....
Have You checked the Relief Valves as if they don't function correctly, the oil will be bypassing the oil cooler.... with resultant overheating...
Have You checked that nothing has been sucked into the fan blades? I left a rag on top of the fan housing one day and luckily noticed it was missing... it was wrapped around the fan.... Do You still have the flaps in the fan housing?
If You do these need to be attached to a spring to remain in the open position... All holes in the tinware are blocked to stop precious air from escaping... including the spark plugs...
I'm presuming You have a doghouse oil cooler and the engine bay sealing rubber is intact so the hot air under the engine cannot be sucked into the fan...

Best of luck

Lee
http://community.webshots.com/user.vw68autobug 

Just remembered...
Having the top of the engine lid open will help the engine suck in cool air... up to 10 degrees...cooler..
Did You time the 009 Dizzy with a timing light at Maximum advance? around 32 degrees from memory....
they shouldn't be static timed...

cheers

Lee

How are you measuring oil pressure?

If the oil you are using is the Mobil 1 5W-50, then it should be just as thin or thick at operating temperatures as a mineral oil of equivalent grade. It is only "thinner" when it is cold, hence it may leak more. Keep in mind that air cooled engines run hotter than water cooled, so you should use a 50 or even 60 grade oil. The other problem with synthetic oils is that depending on their chemistry they can cause shrinkage of of seals in the engine allowing an increase in leakage.

Save youself some money, dump the Mobil 1 and refill with Castrol GTX 2, and stick to this in the future. Like Lee said, check all your engine bay seals and other basics like timing.

I had Shell ultra Synthetic in my car. It leaked bad but ran about 10 deg cooler... that's why I used it, as the car ran a little hot.

*thick oil.. make sure pressure is there.. no run without pressure.. start destroying stuff.. (check oil releif valves as suggested by 68auto)
*fan belt... make sure tight to rotate fan - also make sure clear air path to oil cooler/cylinders (no rats nest inside if sitting for a while- it has happened before)
*make sure all sealing rubbers are intact.. this is the easiest way to cool a motor (esp. kombi).. cut off all paths to the *bottom end*, ie such as the hot air vents and preheat holes etc in the tinware. also make sure all tinware is there..

perhaps look at putting on flares for the top cold air intakes?
also.. what are you using to check oil pressure.. check electrics for this..
good luck!