The old filter would have retained most of its oil - compare the weight of an old filter with that of a new one - and therefore, the pump was able to re-fill the old filter but not the new empty filter (for some reason, see below).
For next time, you might like to consider the Fram PH4562 - my preferred choice for that engine plus many other FIATs and my 164s - from SuperCheap rather than Repco
It's smaller than the Ryco filters, and I'd rather trust Fram than Ryco, for some unjustified reason. Well, maybe not entirely unjustified. Ryco air filters are sometimes very roughly made; cut apart their oil filters and you tend to see the same irregular element spacing, and just less filtering paper than you might expect. Cut apart a Fram filter and it looks high-quality - the element is dense and consistent. That's just my viewpoint, I suggest you don't take my word for it and instead have a look yourself
I think smaller oil filters are a good idea - less for the pump to re-fill when the engine starts - I notice the trend over the years has been for manufacturers to fit smaller filters, yet the service intervals have been increasing. As noted, the amount of filtering media doesn't necessary relate to the size of the casing.
I should point out that a certain supplier in the business (you'll know who I'm talking about) NEVER uses Fram or Ryco filters; he insists on importing UFI (original-equipment-manufacturer) filters from Italy, as fitted by FIAT originally but without the FIAT branding. So if you want 'genuine', there's always that option - and probably costs a lot less than you think.
So - it sounds like the oil pump lost its prime and was sucking air, not oil. I wonder if you did something I did once - did you fire compressed air into the filter spigot, to help drain the old oil? That'll cause the pump to lose prime.
Sometimes you have to be a little brutal and after five seconds of idling with the light on, gently increase the revs to about 3000 or so (no load on the engine of course). If that doesn't make the light go out, then switch off; something must really be wrong. This particularly applies to a freshly-rebuilt engine where the oil pump may be empty. Some people like to pack the pump gears with lithium grease, so as to create a strong suction straight away.
Funny how, like you, I've been changing engine oil for many years - I guess half my life - but what I've discovered relatively recently, while playing around, is that you CAN effectively fill the filter with oil before putting it on the engine, even if it's fitted horizontally. After noticing the weight difference between old and new, I decided to see just how much oil you can get into a filter. What you do is (obviously) sit it with the hole upright, and pour oil into it, brim-full. The oil level then slowly sinks as the oil soaks through the element. You'll find it a little below half-full after 30 seconds or so. Then you can brim-fill it again, it sinks to three-quarters full, and so on. I'm sure the filling rate could be proven by a differential equation, like the alcohol concentration of a punch bowl that's refilled only with neat Vodka (does anyone else remember being baffled by those questions?), but let us just resign ourselves to the fact that it may never actually be quite brim-full.
The point is, if you fit about half a litre of oil into the filter, not much will actually come out when you spin it onto the engine (it might seem like a lot, but it will only be a tablespoon or so) and the engine will get oil pressure much faster, usually within a second. I now do this for all the engines I change the oil on (except BMW, since they don't have spin-on filters).
By the way, if the oil is really dirty, I put the drain plug back in once the oil's drained. I leave the filter in place, and I put in about 2L of some sort of cheap 20W40 oil from The Warehouse - doesn't need to be a full fill. I run the engine for a few minutes (it should still be hot). Then I drain that 'quick oil flush' out, and then replace the filter. While possibly a waste of good oil (which I do take to recycling, I'd like to point out
), I think it's a cheap and effective way to at least dilute the dirty oil normally left trapped in the engine. Otherwise, the new oil quickly gets a bit less 'new' than you might have hoped... which probably compromises the performance of the oil.
-Alex