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2nd Gen Non-Engine/Transmission Strange fuel level gauge readings

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My fuel level gauge has been acting strange. When I fill the tank, the gauge goes to full, but it reads lower and lower each time I restart the truck. After a few days of going back and forth to work, the gauge reads 1/4 tank, even though the tank is really 3/4 full. After a few more days it will read empty, although there is actually around a half a tank of fuel left. Is my fuel level sender dead (or dying)? Or is it the gauge?

Thanks!

Paul
 
The float disinegrates in the diesel and slides up the arm that it is attached to, causeing the arm to drop down and read empty.
 
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