Personally, I like the solution provided by a kitplanes columnist. See the following page: http://www.rst-engr.com/kitplanes/index.htm In particular, see these three articles on capacitative fuel gauge (parts 1, 2, and 3): http://www.rst-engr.com/kitplanes/KP0006/KP0006.htm and http://www.rst-engr.com/kitplanes/KP0007/KP0007.htm and http://www.rst-engr.com/kitplanes/KP0008/KP0008.htm
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