tools94,

A gauge that swings to EMPTY when the key is turned on is an indication the circuit has found a full ground. This could be a wire pinched and broken, or as you said, a bum sending unit.

If you turn the key ON and pull the wire from sender, the gauge should read FULL. Leave the key ON and touch the wire to a known good clean ground. If the gauge now swings to EMPTY, the gauge and wire are fine and the culprit is probably the sending unit.

It's pretty typical to run a small wire from an attaching screw on the sender to a good ground on the cab, this insures that the system works. The gauge should be grounded too, but it usually accomplishes this through a bond to the dash assembly.

It might be a good idea to update your profile with the type of truck you are working on, it makes it easier for folks to answer or help with your questions. Good luck.

Stuart