Here is why you need to test this sender properly. Note the negative lead for the DVM is connected directly to the flange and we have a OL reading on the DVM. Don't mistakenly test this type of unit by connecting to the flange. You need to test across the two wires coming out of the top of the sender. Like the conversion capsule this sender is isolated from the tank.
What do I recommend and install most? I prefer the mechanical sender with conversion capsule. These are avaible from my good friends at Sailboatowners.com.
My Favorite:
Moeller Mechanical Fuel Senders
With;
Moeller Conversion Capsule 035760-10
Good luck with your own trouble shooting..