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It appears that the float gets hung up along the shaft hence the erratic gage. Depending on your patience level, you could disassemble the unit again and clean the shaft thoroughly.
Sometime back, I found one of the copper wires broken on my SU. I took a hair of copper wire from a strand and soldered it to join the broken wire. It works fine now. B4, it never registered correctly.
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the sooner you start... the sooner you'll get done  If it ain't broke, don't fix it.. Its always simpler to tell the truth... 
2007 Honda Accord EX
2007 Honda Accord SE V6
96 C220
97 Explorer - Found Another Home
2000 Honda Accord V6 - Found Another Home
85 300D - Found Another Home
84 300D - Found Another Home
80 300TD - Found Another Home
Previous cars:
96 Caravan
87 Camry
84 Cressida
82 Vanagon
80 Fiesta
78 Nova
Ford Cortina
Opel Kadet
68 Kombi
Contessa
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