I know in the 2005-06 Pathfinders, which are pretty similar to the Xterras in many regards, there is an oil pressure sensor and a "real" oil pressure gauge. In 2007, they used an oil pressure switch and the gauge is actually a "dummy" gauge; the needle is either at zero or at halfway on the gauge. The early style had three wires to the oil pressure sensor and the later style had two wires to the oil pressure switch. When the oil pressure sensor fails on the earlier type, the typical result is that the needle goes to the "high" end of the gauge. There have been a lot of problems with the aftermarket oil pressure sensors, so, it's best to go with the genuine Nissan oil pressure sensor. If you also have an oil light and it's not working (after you get your gauge situation straightened out), it's possible that the bulb is bad. I know these use an integrated meter type instrument cluster, but there may be still some replaceable bulbs from the back of the cluster. If there aren't, it would have LED's and you may have to send out the cluster to have it fixed.
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