I don't know about your instrument light problem, but your fuel gauge problem is a bad fuel sending unit. This failure is very common, and the gauge bounces just as you described, especially when you are at a half tank of gas.

Also, please refrain from typing in all caps. In internet etiquette, it is the same as yelling.

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Paul S.

2001 E430, Bourdeaux Red, Oyster interior.
79,200 miles.

1973 280SE 4.5, 170,000 miles. 568 Signal Red, Black MB Tex. "The Red Baron".