If you have the tank out, the sending unit has 2 spring loaded adjusting screws that hols a wire wound resistor on a flat board in place. the contact points are thru the spring to the board. the float is the other contact and slides up the side of the board.
remove the board, and carefully clean the contact area wire, the slide contact area. reassembple and see how it looks on the guage hanging down. should be below E. if not, wiggle the board, see if the reading drops, if it does, you may have more cleaning to do. there was an article where one guy actually soldered the last few wires together on the top side, which corrected the reading. How he did that is vague tho, as resistor wire does not hold solder.
it is all contact point resistance that is the problem, if you get it cleaned and good contact made,the guage will be more accurate. that was the longest part of changing my fuel pump, playing with that part to get the reading right. I had it apart and together about 20x tweaking and playing with it. net result, it was dead on for a month, and now is at the 1/16 mark being near empty. but seems to be holding there. I suspect e is emptyh now, as at that point now, it took 10.5 gallons on an 88, so only 2 gallons left. close enough.
[This message has been edited by tjm4fun (edited 08-19-2006).]