... The auto meter indicator needle is also untrustworthy, since it will indicate like 1/8s but when the shutter fires it's obviously not using 1/8s. However when I actually use auto exposure it is right on. I rarely use autoexposure but since my manual meter needle is not working whenever I'm unsure of the lighting conditions I can always use the autoexposure.
This apparent inconsistencey in the visuals on firing the shutter is -initially- highly disconcerting to the OM2n user, but normal behaviour on the part of the camera.
The chief question is: are the negatives correctly exposed?
If so, the camera is working OK.
As has already been mentioned. the camera has a complicated split-personality exposure measuring system: a before and a during the actual exposure.:confused:
Although something of an oversimplification, the camera, effectively, works in such a way that all exposure ends up in real-time automatic off the film exposure: the manual setting gives you an "indicative" reading only. When you press the shutter, the real-time- off-the-film reading (which actually uses another, dedicated, sensor) takes over. What you, as user, see, is the indicator needle doing an inexplicable dip at the point of shutter release.

This is normal behaviour for an OM2n.

This is so whether you are in "manual" mode or in "auto" mode, it doesn't matter.
If the exposure is correct on "auto" (allowing for the need to dial in exposure compensation for non-standard scenes, as required by the needs of the scene and your "artistic judgement"), it should all be OK.
Make sure you use two 1.5v Silver Oxide batteries.