I don't think its your sender assembly itself, but rather its mounting in the tank. I replaced my sender about 4 months ago when the power cable rotted off an dfoudn that it was overly sensitive to movement afterwards. I surmise I just mounted it off a little bit.
The tank has a... can't remember the name... mini-tank in the middle of it that you can see if you pull your sender and lok in with a flashlight. The minitank is basically just a walled area (2.5"-3" high) in the middle of the tank with an opening up front to let gas slip in. The funtion is basically to reduce fluctuation by preventing gas from slamming forward and backward as you accelerate and decelerate. Also serves to keep the fuel around the sender arm (where its sucked up) and prevent starvation when the fuel level drops.
I would suggest pulling your sender and examining it. If it looks like crud and the arm (that regsiters fuel level) seems shot replace it. If not, replace teh fuel screen (the baggie thing on the end of teh arm), tighten down the bolts at the pre-pump (do you have a pre-pump or just one pump on the '89?), replace teh O ring on the outside of teh tank, and remount the arm in the tank. Be caeful when you remove the sender... it DOES fit out the opening, but barely... you will need to spin it slightly and keep an eye on the arms to make sure they don't get bent, etc. FYI, be sure to check the electrical pick-up on the outside of teh sender and the sender ground cable while your at it. The latter is located just inside the driver's side rear wheel well inside the boot.
good luck,
rt
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