Well I figured out why my fuel gauge in 11602 would not read below 1/4. The float was installed in the arm the wrong way so that it is not in alignment with the fuel pick up tube. As the fuel level gets low the float obviously gets lower but if the float is set to the left side of the arm or toward the front of the tank it will hit the ramped surface of the tank and not the bottom of the tank. So check your float to be sure it is snapped into the arm in the "right" direction. From the arms half round loop were the float snaps into the arm, the float should stick out from the arm to the right side of the arm or toward the rear of the car as it would be positioned when installed in the tank. When its down and reading empty the float will sort of straddle the fuel pick up tube and this will also reduce the bending moments on the arm and on the arms pivot in the sending unit.
With the arm fully to the bottom of its travel the gauge still reads 1/8 but now I will know when that three inches of fuel is really gone!