This is for a gen 2. I do not know if a Gen 1 works the same, as I have not had to repair one.
The 97 LSC we used to own has developed a faulty fuel gauge. It did it once about 3 years ago, for a day, but never happened again...until now.
anyway, I am writing this up to help populate the SEARCH FUNCTION as I was unable to find the correct method of repair from past posts.
1st off, Ford lists a Fuel sending unit in their catalog. it is listed at FPN for $31. Unfortunately, it is NLA(no longer available).
I am told it never was available as a separate part anyway, but regardless, here is how I fixed it.
I removed the gas tank, and then unbolted the sealed "hat" to reveal the basket. I then unclipped the basket, and lifted it out of the tank.
I un-clipped the wires that go to the sending unit,
and removed the 3/16 bolt that holds the sending unit to the basket.
I un-clipped the sending unit cover(small plastic box)from the mounting plate and inside is a rainbow-shaped contact strip, and a small contact tab.
I could see wear marks on the contact strip with many small ribs where the contact tab had been rubbing to make the connection. I could clearly see the path on which it traveled as the float moved up and down. The contact strip was worn down from the float tab moving the contact tab across the rainbow shaped strip. I bent the contact tab OPEN slightly to give it more leverage against the contact strip and the metal lid so it would have a stronger, more "sprung" contact. Dont over-do it, or you're liable to cause the strips/tab to wear down again, only at a faster rate.
I figured I have nothing to lose. it'll either fix it, or it wont.
I put it all back together, and re-installed the tank, and it works good as new again.
One obvious point of information was when I re-assembled the flot arm on to the sending unit box, and moved the float by hand, I could actually feel the float's fulcrum arm transfer the small tiny ridges of each rib from the contact strip. it was kind of cool.
Hope this helps someone in the future who needs to fix their gas gauge to no longer read FULL when they know it isnt full.
Only time will tell if this is a long lasting repair. it makes sense though that the sprung contact tab would lose its tension on the contact strip over time.