I notice you mention steering column failure. How did this materialise? I have noticed that when cornering hard, there is quite a pronounced "click" and a knock from the steering column which can be felt through the wheel. It has only started doing this recently.
Can I add a failed steering column to the list now too?
Regarding the oil, I put in 300ml of Castrol Edge and took it for a spin. The light did the exact same thing. I put the rest of the bottle in (1l in total) and the problem seems to be fixed.
Lesson learnt - The electronic oil gauge is completely unreliable. You'd get a more accurate reading by telephoning your local vicar and asking him.