I have a new to me 2003 Yamaha z200 hpdi and the engine runs fine but
I have no oil pressure on the gauge. Where on this motor is the sending
unit and how can I test for this problem
You have a 2 stroke motor and it doesn't have oil pressure like a 4 stroke. You probably are are seeing an oil level indicator if you have a Yamaha gauge package. Here is a link to the Yamaha Z200 Operators Manual and the oil level indicator is described starting on page 21. http://www.yamaha-motor.com/assets/service/manuals/1/lit-18626-07-00_1418.pdf