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Hi
was out on the 906 yesterday for a test ride and to get fuel, the only problem is the fuel gauge was fine when filled but after a while when fuel level started to drop the gauge started to bounce up and down quite rapidly. when I got back with the bike on its stand the gauge was steady but if I rocked it then the needle would bounce Is this normal or is there meant to be some sort of damping on the gauge. I was thinking of connecting a capacitor accross the gauge to smooth out the reading. Does any one have any thoughts?

I had the same issue with mine, when the fuel level got down to near half the needle on the gauge would bounce or drop to empty. The issue I found was with the fuel level sender it the tank. The wiper arm in the sender unit wasn't making contact with the coil in the middle. I just bent the wiper arm so that it made contact all the way across the coil and it fixed the problem.
I wish I had taken some photos when I had it apart but I found this video that goes through a similar issue.
https://www.youtube.com/watch?v=228YQN_SkKI