Ill give that a try. I think Im just going to drop the tank and check the sending unit. thanks again for your help. Its greatly appreciated.
You can drop the tank, but from what you described, it's not the tank that's the problem.
The tank sending unit gauge portion is essentially a large rheostat. As the float moves up and down, it makes contact on different spots of the wrapped wire, which changes the resistance to ground, which is what the gauge "reads".
When you disconnect the sending unit wire, you are tricking the gauge into thinking that the wiper (what the float is attached to, that wipes the rheostat to make contact) is so far off the rheostat it's not even touching it anymore. Conversely, when grounded, the gauge is tricked into thinking the rheostat has 0 resistance to ground. It is no different than hooking the sending unit up outside of the tank, and manually moving the float up as far as it will go, and as far down as it will go.
The rheostat CAN be cleaned (they seem to develop a black coating that doesn't conduct properly), but if the sending unit is in need of repair, replacement ones can be had for not much money.
If the sending unit was the problem, your gauge would max out either direction depending on whether the sending unit wire is grounded, or open, which would indicate the gauge and all it's wiring is good. All the gauge does is determine the amount of resistance to ground, and reflect that as a spot on the gauge face. Nothing more, nothing less. All the sender does is vary that resistance based on the float level.