Talk:Gen 3 & 4 Erratic Fuel Gauge (Flex Fuel only)
From Taurus Car Club Maintenance and Modification Wiki
Good article.
I discovered the very same problem on the 2000 flex fuel SE that I had. The fuel guage would sometimes go to empty and then return to the correct amount, all while driving the car. I checked wiring from the front of the car to the plug that connects to the fuel pump in the tank and found no problem. I checked the wiring to the guage and found no problem. I even installed a brand new fuel guage and that didn't fix it. While studying the wiring in a Haynes manual I found a small device in the circuit. That device turned out to be the module and when I discovered it behind the radio and bolted to the dash I began to troubleshoot it. Turned out that there wasn't much to check because the electronics are encapsulated with epoxy. Connecting/disconnecting the plug to the module made the guage waiver. I ordered a new module and it fixed the problem. My guess is that a solid state part mounted to a pc board goes bad intermittently.

