I have a 69 camaro SS. I have not put a full tank of gas through it as yet. The gas gauge seems to go down fast and I ran out of gas at about 1/8 full. I put in 6 gallons which brought the gauge up to the right side of full , in other words way past full (needle at 3'clock). I did not fill it because I may have to drop the tank. Would this be a faulty gauge or a grounding problem? Any insite would be appreciated.

Check 2 things, The grounding at the sending unit and also the grounding of the instument cluster.

Does the instrument cluster have an actual ground strap/wire or just grounded through the dash?

this might help you out graemlins/thumbsup.gif

fuel gauge/sender troubleshooting (http://members.core.com/~faldrich/fuelgage.htm)