It's the oil drain plug hole, I just finished my swap and that's what it's for... the other is for a temp sensor but most gauges made here in the US won't fit the threading... you have to get an adapter from SPL parts to get it to work. I just drove my 240sx today for the first time with the SR20DET installed and didn't notice any issues with oil pressure. It also started right away when I first started it up with no oil pressure or starvation issues.
I gotta say it's one of my fave mods I have done
But back to your question, the big hole is for the drain plug and yes the stock one works great with it.