If the sender is in good shape then the gauge fluctuations are nothing more than an accurate representation of the fuel level as it sloshes back and forth. There's a clever device called the "Gauge Wizard" that can solve that problem by electronically damping the fluctuations in the resistance signal. It also allows you to accurately calibrate the gauge so that when it says "F" the tank really is full, when it says "E" it really is empty, and so forth for every quarter tank increment. You can purchase it directly from the manufacturer in England (Google it) for a reasonable price. I found the setup to be a little fiddly, but once done it worked like a charm for my car.