lex446,
As I recall, with the ignition on, touch a wire from the single wire connection on the gas gauge sending unit to ground. The gas gauge should go immediately to Full. (don't leave it connected for very long or you chance burning out the gauge) If it does, your problem is the sending unit.
Pull the sending unit from the tank and place an ohm meter between its ground plate and the single electrical contact. Swinging the float through its arc should give a steady rise or fall in impedance numbers.
Its been a while but I believe this is correct. If not, someone should jump in and correct me. Good Luck!