Had the same problem with my 90 300SE.
Put up with it for 2 years. Dealer said it was the sender.
I replaced the sender. Still didn't work. Then I replaced the gauge. Worked for about 3 months. Thought it was the gauge so I sent it out for repair. $65.00 later it was found to be good.
I always thought it was a ground somewhere. I ran a new ground from the sender. Still didn't help. Finally I ran a new signal wire from the sender connector to the gauge cluster connector.
Problem Solved for 6 months now!!!!
Took about 2 hours to run the new wire and make it "factory" looking.
BTW, I have a new sender for a 126 car that has 0 miles on it.
Hope that helps,
Dan
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