The problem is caused by the fuel sloshing around in the tank and the fact that Harley does not use a "dampened" gauge. The sending unit is a float attached to a rod inside the fuel tank. As the float rises and lowers, it changes the resistance of a variable resistor in the tank. The resistance is read by the gauge and converted into a reading that approximates the level of fuel in the tank. The reason the gauge is not dampened could be any number of reasons. Either Harley wanted to use a cheap gauge or a dampened gauge might allow you to run out of fuel because it reads the level of the fuel too slowly. In small tanks like the ones on motorcycles, this could be a problem. I know of no way to remedy the problem without changing the gauge and sending unit.
Good Luck
Steve
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