As Vern said, everything stated so far is good advice. Sounds like it might be mostly the sludge that is the culprit, and with it possibly more neglected things. You might want to pull the crankcase cover and check out all the internals, given what you are finding.
One more thing I would add is that you may have an oil pressure test port just below the "red head" oil stick. Basically "any" oil pressure is "good" oil pressure. 5 PSI and up???
Here is a pic I just took of a late 35 governor for reference. The 1/4" pipe plug is where you can install a gauge, when you retest.