Well, after working for a few hours last night on the problem ... this is what I found. When I grounded out the wire, the gauge went to HOT .. so the wire looked good. Tried all kind of things .... then late last night while watching TV it hit me ... when I installed the new sending unit, I wrapped the unit in teflon tape. I would say that the tape is keeping the unit from grounding ..... Anyway, Ill remove the tape this evening and see if it was just a bad sending unit from the begenning.