Sounds like your gauge is working. Just replace the pump and filter. Worked for me. Mine would starve for gas when it got down to half a tank. Will be doing the same thing on my 2001 navigator in a couple of weeks.
Had the same problem on my 99 EB. Dropped the tank and the filter on the bottom of the pump was hard as a rock. I went ahead and changed the fuel pump while I was in there. Installed new filter on the pump and it works great now.
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