cgresham1212,
I know what you mean. Fuel gauge problems seem very hard to trace. On one of my trucks, I had to resort to taking all parts out and bench-testing each part separately, and then testing them together on the bench, and then still having grounding problems back on the truck.
I have heard/read different opinions about the gauge housing having to be grounded. It does not hurt to test this by running a test-wire from a clean ground (from the battery neg. terminal, if possible) to and clean part of the gauge case (a clean mounting screw/bolt/hole. I have a long test wire for this purpose it has a small alligator-clip on one end and a large battery-termial-sized spring clip on the other end (I will be using this same set up in a few minutes to check out the grounding of a taillight that is giving me problems).
Good luck,
Tim