Although, there's nothing like actually having access to the car to make a proper diagnosis, I'll have a stab at this one.
The oil light measures the pressure, rather than amount of oil. If it's on, it means that the engine isn't getting fresh oil, and consequently is wearing out really quickly..
Although you'll need a bit of further diagnosis, it's likely that your engine is shafted, and the only sensible course is to replace it as a unit.
I did that once, quite successfully on a petrol astra, and it cost me 60 quid for the motor, and 150 quid to get a decent mechanic to swap 'em for me.
As for how to tell if your motor is shafted, a big indication is does it turn over on the starter?
A "no" here, is bad.
Did it get more mechanically noisy when it stopped?
A yes here is "bad"
Steve C, May 2009
