As far as the layout of the fuel gauge/pump I was incorrect.
Everything is assembled as it should be just was a bad connector for
the sock filter
Okay so I put in my old fuel pump and noticed there wasn't a joint
connector or a sock filter hooked up. So I emptied out the fuel tank
completely and found the joint connector/sock filter floating around on
the bottom of the tank. I hooked this back up and reassembled
everything and it seemed to run fine(I think it is because the joint
connector and sock filter add about 1 1/2'' of length to reach the
bottom of the tank which makes a dramatic difference in suction for the
pump). The next day I was driving it and it got down below half tank
again and started freaking out worse than before. I am guessing the
connector just sucks and won't keep the filter connected. My next step
is to go down to autozone and get a new connector(maybe a hose perhaps
2'' or so long) with some clamps and reattach everything and pray it
holds and the problem is fixed.