Since you've obviously eliminated any issues related to the engine itself or sensors on the engine, I would look to the wiring between the sensor (I guess you can probably start wherever the harness connects to the new motor) and the gauge, looking for anywhere the wire could be stripped or corroded or otherwise grounding to something else. This very well may involve pulling the dash apart. I had an oil pressure gauge on a Toyota do something similar and it turned out to be a corroded connector at a harness link (after replacing the sending unit and checking fuses and relays of course).