The + terminal of the fuel gauge goes to a switched power source, the - terminal goes the terminal on the sender unit. It is important that the mounting flange of the sender is good and grounded to tank, (It's usually through the mounting screws or a staple in the flange gasket) and the tank is good and grounded to the body or chassis. 16 AWG wire is sufficient, the current draw is minimal, but like GG said 14 would probably be better due to being more resistant to damage. That being said my dog chewed the wire going to to sender unit in two last week!� [smiley=angry.gif]
Hope this helps!