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Glenn,
I think your logic and math seem plausible. I redid my King Sealy gauge a couple years ago but it only goes to about 5/8 when the tank is full. I have not tried it on true empty as I don't want to run out of gas just to find out what the gauge says. At least I have an indication of fuel. I would be interested in hearing whether adding another rod brings your gauge up to full. Keep us informed.