As i indicated in my threaded notes, my '97 S320 gas gauge was in accurate and after replacing the sending uint the problem only returned after my second fill up. I am happy to report that the problem has finally been resolved, as it turns out I had a bad connection at the instrument panel with the small connector. This was dicovered as a last result by removing the panel to inspect the connection prior to taken it in to the dealership.

Thanks for all of the other suggestion.... This is a great site for DIY's...