Thank you for the responses.
Regarding atmospheric pressure, there are fluctuations, but not a steady decrease (or increase). Also, we are using a differential pressure sensor which is referencing the atmospheric pressure, so the sensor output should not be affected by these atmospheric fluctuations.
Likewise with temperature, there are small fluctuations (68°F to 75°F) but no steady increase or decrease.
We've tried to pressurize the setup in a bath of water and have found no visible bubbles. We've done this to the 3 psi limit of the sensor. In operation, the sensor will see no more air pressure than 12" of water.
We have actually tried a latex diaphragm/bladder, but have found that the response and accuracy are greatly diminished. Maybe there are better materials/geometries.
Externet: The air dissolving in water is an interesting point. Do have any formulas to predict the extent of this?
Thanks again.