Recently purchased 1995 Hunter 29.5 ran out of fuel even though the fuel level indicator registered more that 1/2 full. Lucky we were moored. How extensive a project is investigating what the cause was/is?
Its usually a matter of removing the wire coming from the sender on the rear of the gauge, and then see what the gauge reads... then very briefly apply a ground to the post you just removed the sender wire from.... when you apply a ground, it should cause the gauge needle to go the other way than it is when no ground is attached. If it does, this indicates the gauge as working proper... so the sender will be the likely cause of the failure.
So remove the sender from the tank and see if its stuck or if its improperly adjusted.
With the gauge removed from the tank, the wire hooked up and the mounting flange grounded, you should be able to get full range on the gauge by moving the arm... but the arm length will determine the "throw" needed for the depth of the tank to get an accurate reading of the fuel level.
If the gauge test shows the gauge to be working, but the sender does not make any indication, you will need to check continuity in the sender wire and in the tank ground wire before assuming the sender is bad.
The system is really simple... the sender is actually a potentiometer in the ground side of the circuit, and the gauge just measures the ohm differences as the potentiometer moves up and down the scale. The system is powered by the hot wire connected to the gauge.