Try hitting the tank while someone turns the key. Give the tank a good whack when the pump should be running. If the pump runs this way you'll have to replace the pump.
My gauge also has that blur, but for well over a year now. Today my gauge showed a full tank when I ran out of gas. The pump/ sender are new with 2k miles. The gauge still had the blur but worked fine until today.
I once had a problem where the fuel filter suddenly clogged, maybe some bad gas.
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Sunday, July 4th, 2010 AT 12:40 PM