I'm jumping on the oiling bandwagon too, is your oil feed from the head or from the oil filter housing?
If your car is compressor surging, it's generally moderatly violent. Here's a good idea: LET OFF THE GAS PEDAL! obviously just staying in it will just make it keep happening and be harder on everything. Generally you can get around compressor surge (if that is what you are truely talking about) by just letting off the gas a little and accellerating part throttle through the surge rpms and full throttle after that.
Have you considered a 1.8 sohc swap?
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