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Lets have cooler heads prevail here. Most likely this is an inexpensive fix, and not likely to lead to a major engine failure. If you don't already have Wayne's book, purchase one. I would start with the $6 oil pressure switch. It shouldn't take anyone more than an hour or so to replace. Even if you pay for someone else to do it, the bill shouldn't be more an a couple of hundred bucks. If that's not it, then try the thermostat o-ring. I had both of these leaks, parts cost less than $15.
I would absolutely email the seller with the photo's you posted here and follow up with a phone call. This should not, I would think, be a deal breaker. But the seller should pony up the cost of the repair, especially if it's the most likely culprits....
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