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If you're stalling, it isn't due to oil pressure. The oil pressure drops because the engine is stalling, but it isn't what causes the engine to stall. You could be 3 quarts low on oil and the engine wouldn't stall (it may blow up though).
As Muffing asked, what is it idling at?
There's an idle adjustment screw on the throttle body, directly in front of the TPS. I'd suggest looking into adjusting that. The easiest way is to get a helper to keep the car from stalling out while you're adjusting it, assuming it stalls quickly when idling.
If this doesn't fix your problem, then I'd start looking at the AFM, and the fuel system. If you can pressure check your fuel rail - if it's low then either your pump is going out, or the AFM has a bad connection (the AFM is linked directly with turning on the fuel pump).
As for the fluids, pretty much anything DOT3 for brake fluid & clutch fluid, I personally went with a syncromesh transmission fluid for now, but when I replace the clutch in the spring I'll go with something a little bit higher grade - lots of people say to go with Redline, everyone recommends Toyota red coolant from the dealer, and oil is completely up in the air = Amsoil, Mobil1, Royal Purple, Valvoline, etc. etc.
More detail on the O2 sensor. Crawl under the car directly in front of the driver's side rear tire (my have to jack it up, luckily I don't yet). Follow the exhaust pipe up towards the engine, just above (towards the engine) where it comes in contact with the black plastic under body covers is where you'll see your O2 sensor. If you've replaced the oil filter, then you should already know where it is since they are pretty close together.
The problem with 87's is there were a lot of changes, especially depending on what month it was made in. My '87 has the bigger brakes, and tail lights, but still has the blue top engine from the previous models. So I'd double check the O2 sensor to see how many wires it has. I believe mine has 1, but for some reason I remember picturing two wires when I changed the oil last - I haven't replaced the O2 sensor yet to know for sure.
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