Mat, my '97 TSi had the exact same problem last year, and the problem was with the dash display oil pressure sending unit. The dealer did no expensive diagnostic check on my car. I told them that the oil light flickers at idle when the car is warm, they agreed with my suggestion that it should be the display sending unit, and simply ordered it. I had the sending unit replaced under warranty (I have the 5 year Chrysler Gold Plan warranty as well).

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Todd Hynes
1997 Talon TSi AWD

97 Talon TSi AWD
11.9@115mph
1.61 60ft