yo NR,
Although this TSB does not specifically addree your issue, it is most common problem;
TSB 88-18-03 Fuel Gauge Erratic
Publication Date: AUGUST 31, 1988
FORD: 1987-88 MUSTANG, TAURUS
LINCOLN-MERCURY: 1987-88 SABLE
1988 LINCOLN TOWN CAR
LIGHT TRUCK: 1987-88 BRONCO, F-SERIES
ISSUE: An erratic fuel gauge needle when the fuel tank is 1/2 to 1/4 full may be caused by excessive wear of the resistive film on the fuel pump sender assembly. The wear occurs during transporting of the vehicles via rail or truck over long distances. The fuel gauge will indicate correctly from a full tank to about 1/2 or 1/4 tank of fuel. When the fuel gauge needle is below the 1/2 to 1/4 tank range the needle will swing all the way above the full mark on the fuel gauge.
ACTION: To correct this, install a new fuel pump sender assembly. Refer to the appropriate 1988 Car/Light Truck Shop Manual, Section 24 for detailed service information. Refer to the following fuel pump sender application chart for the correct service part number.
Fuel Pump Sender Application Chart
Model Year Application Engine Tank Size Service Part
1987-88 Mustang 2.3L./5.0L All E7ZZ-9275-A
1988 Lincoln Town Car 5.0L All E8TZ-9H307-G
1987-88 F-Series/Bronco 4.9L/5.0L All E9VY-9275-A
1987-88 Taurus/Sable 2.5L 16.0 E8DZ-9H307-F
1987-88 Taurus/Sable (W/ Tripminder) 2.5L 18.6 E8DZ-9H307-E
1987-88 Taurus/Sable (W/O Tripminder) 2.5L 18.6 E8DZ-9H307-A
1987-88 Taurus/Sable 3.0L 16.0 E8DZ-9H307-C
1987-88 Taurus/Sable (W/ Tripminder) 3.0L 18.6 E8DZ-9H307-D
1987-88 Taurus/Sable (W/O Tripminder) 3.0L 18.6 E8DZ-9H307-B
PART NUMBER PART NAME
E8DZ-9H307-A Fuel Pump Sender Assembly
E8DZ-9H307-B Fuel Pump Sender Assembly
E8DZ-9H307-C Fuel Pump Sender Assembly
E8DZ-9H307-D Fuel Pump Sender Assembly
E8DZ-9H307-E Fuel Pump Sender Assembly
E8DZ-9H307-F Fuel Pump Sender Assembly
E8TZ-9H307-G Fuel Pump Sender Assembly
E7ZZ-9275-A Fuel Pump Sender Assembly
E9VY-9275-A Fuel Pump Sender Assembly
Some have said that they cleaned contacts w/ carb cleaner, 000 steel wool, and 400gr emery paper