Fuel sender wiring

Fuel gauge was reading empty at the end of last summer on my '88 2001. I pulled the sender wire, touched it to the tank, and the gauge pegged so i assumed bad sender. Ordered an SSS/SSL unit from KUS per the recommendations here and installed it last weekend. I checked the sender before installing and it read the 240 - 33 ohms as it should. 

The old (original?) sender had a post in the center for the sender wire from the gauge (red)  and a tab on the sender base for the "ground" (?) wire from the gauge (black). The new sender has a pink wire and a black wire. I didn't research how to wire it properly and the boat is 250 miles from home so I did my best. I first connected black to black and red to pink...gauge was showing full with key on (only 15 gallons in a 27 gallon tank...i know the volume since the tank was out of the boat and empty before this weekend). I reversed the wires and same result. At this point I knew that I didn't know what I was doing so I moved on to other things.

I think (from the instructions on KUS site) that red wire from the gauge should connect to the black wire from the sender. I think the pink wire from the sender and the black wire from the gauge should both be connected to ground which i'm thinking i can use a spade connector on one of the sending unit bolts at the tank? Is that how it should go?? thanks!

when i turn the key the gauge "pegs" to full then settles just below full...can't remember exactly what happened when i grounded the sender wire last fall...

while I have you here...2 dumb questions about timing adjustment...

1. Is the proper sequence : loosen hold down bolt -> start engine -> rotate distributor until desired advance -> shut down engine -> tighten hold down bolt?

2. how loose to loosen hold down bolt?

thanks!

1) sender was reading 106 ohms which seems correct given the known fuel level and sender length relative to tank depth

2) gauge seems "peg" when connected as above, but finally showed ~7/8ths after a wake boarding a couple times

3) I'm seeing 5.5-6V at the red wire from gauge

I'm pretty confident the sender is working and wired correctly, but it think the gauge should have 12V? need to do some more research and look into the dash wiring i think.

On a positive note, I did adjust the timing without sending and wrenches flying