Ever since my car was new, it would read empty when it still had about a quarter of a tank. When I bought it off of my brother (the original owner) twenty years ago, I cleaned the terminals and adjusted the float lever rod, which solved my problem. I haven't had any further issues, other than a burnt out low fuel warning light sensor, also located in this assembly. Gives me something to repair in the future.
As far as corrosion goes...that was in pretty decent shape. But that spray definantly helped it out. Gotta try some of that. What grit of sandpaper did you use? Also did you put the trailer hitch pin clip to space the backside to help with the contact? In the video, you just said you used a piece of metal. I did this in one of my vids a few eps ago but the twisting that you did was a good idea. Maybe i'll try that in the future too.
The pin didn't work for me since it was too fat to put behind the washer, I ended up going with a small c clip and doubling it up, randomly found some in my stash, it worked out really well. It was 60 grit sand paper from my woodworking projects but I imagine any paper would do. And with the c clips I bent the arm back into it's normal shape and kinda bent it backwards. So the oem groove is what is touching again.
Mine used to be bad, where it wouldn't even go over 1/4 of a tank, then i fiddled and it hung around 3/4 a tank.... I'm going back out today to see if i can can get that magical full tank reading.