[Nditiz1]

Is it still doing the "fluttering"?

This is how mine works:

If Oil level on dipstick is at the 1/2 mark (a mark I made on the dipstick between hi/low) the gauge will read close to the bottom. It will not move a lick until the car is warmed up unless I accelerate it may drop to empty.

Once the engine is warm and the temp kicks the oil cooling circuit (~174) the oil level rises up to max as long as I am sitting idle or cruising at a constant speed. Any other acceleration/deceleration pegs/lowers the reading. This makes sense as oil inside the tank is sloshing around.

This all seems normal to me.