Fern: I just put my gas gauge in my 54,and was re-wiring at the same time. I had a question about the wiring so I called the tech. line...the tech guy told me to make sure my gauge WAS grounded. If you look at the back of the gauge you will see either a small plate or raised bumps..these need to make contact with you housing...NOTE metal to metal...no paint...How do I know...had to remove housing from dash and sand PAINTED area to bare metal. Then put back together and make sure I have good contact between housing and dash.
Try that and see what happens....also, there have been posts about how to check gauge to make sure it is working...It's been asked so much it should be the FAQ or tech tip area...
Good Luck.
http://i1091.photobucket.com/albums/i381/snipewarrior/Internal%20Parts/P1010070.jpg