QUOTE;
"we dont know what to do now short of pulling oil pan and/or pump cover and replace the pump and inspect the pan"
You have a gearator oil pump driven by the front of the crankshaft. They are almost bullet proof on the 3.8. Normally they idle at about 40-45 psi and go to 55-60 psi above 1500 rpm with good 10W30 (warm). You seem to be low @ 40 cold and less than 40 warm! Could it be that the pump was dry when you started it? Did you turn it over with the ignition disabled first, to prime the pump and engine?
If not, it could also be the pump gears are squealing!