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Oil level checks out, but when i started it on a sloped drive way the light was flashing and going nuts..... sounds about right with a pan spacer. makes me think this drive up 8 from yuma to LA, i hear the hills are epic, are going to make me flinch if that light comes on....
Since the amount of oil in the pan is what determines the function of the oil level sensor system, the pan spacer will not affect this system. Only the dipstick will read incorrectly.
If you are using the pan spacer to move the oil level away from the crankshaft, the correct dipstick readings will be about 8mm lower than the marks. If you are running the pan spacer to be able to run increased oil volume, use the stock dipstick markings.
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