My guess (emphasis on 'guess') would be that the non-working fuel gauge and no gas to the genny are unrelated.
I've got a '96 Southwind, so our rigs are very close cousins.
One day I was running the generator while a buddy and I were working working inside on the RV. We noticed as we moved around that the generator would miss, if we stood still it ran fine. About an hour or so later the fuel got low enough that the generator ran out of fuel. Clearly what was happening as we moved around inside the RV was that the fuel in the tank was sloshing enough to cause it to get a gulp of air every so often.
I realize that's not a very scientific measurement, but it certainly leads me to believe that the generator will pull fuel until it can't find any more, as opposed stopping with the gauge is at specific point.
So for you generator I'd look for a bad fuel pump and/or a plugged line.
For the gauge check the wires on the sending unit, it sounds like a bad ground to me (that's what a problem was once for me when turning on the key would bury the gauge on E).
1996 Fleetwood Southwind 34'