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I have the same problem on my 02S, if i run the tank almost empty. Indicator stays on and needle stays down also (even goes down further, as the remaining fuel is calculated from consumption!). After a few days it always comes back. I think that the sensor is most likely blocked at the low end. Up to now I have not changed it, as it is a quite expensive part combining sensor and fuel pump. For a 98 model you are better off, as the sensor can be changed separately and you can find some used ones via eBay etc.
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Don't panic !
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