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It's on the back of the instrument cluster. You need to take off the light switches and lense to get to it. It's on the backside, about 2"x2"
 

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I'd suspect that chip behind the dash first. I've seen atleast 5 people go through the whole sending unit thing before replacing that chip and it solving the problem.
 

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On my 88 convertible when I looked, it didn't have a chip. I believe they call that chip a fuel gauge amplifier or something of that sort.

I have seen them on 90+ models. I havent had to check my 89 yet (knock on wood. It's on the back of the actual gauge cluster.
 
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