The only gauge that is different in the bj/fj 40 series is the oil pressure gauge. There is a 12volt sender and gauge, and there is a 24volt sender and gauge; however, they are common to the different engines (B,F,H). The only other real difference in the bj42 instrument cluster is the 24/12volt dropper. You have a 12volt sender from the bj60 engine, and a 12volt gauge from the 77fj40 instrument cluster. It should be configured properly. The 12volt oil pressure gauges have an internal resistance of 44ohms and the 24volt oil pressure gauges have an internal resistance of 66ohms.
According to the Toyota B series engine repair manual, normal oil pressure for a HOT engine is:
at idle 4.3psi minimum
at 3000rpm 36-85 psi
(Normal oil pressure for the F series gas engine is 44-50)
The B series uses the same oil pressure relief valve as the F series, but they use different springs, hence the different operating pressures. The B series and H series use the same springs, and the H series also operates from 4.3-85psi.
I have an 84bj42, and it behaves as you describe. It pegs out when cold and above-idle rpm, and then drops down to almost nothing at hot idle, and that is with 15W-40 synthetic oil. With normal pressure ranging from 4.3 to 85, there is a lot of room for movement on the gauge.