I think it is typical. When it is low it will bounce a lot more than when full. If you want to keep the warning light from coming on at 1/4 to 1/8 full tank you will have to remove the float from the gas tank.
Very easy. Either the left or right side of the fuel tank will have a 5 or 6 screw "top" where the sender is located. It is just a float attached to a rheostat. The rheostat has an additional prong that engages the warning light. You can bend it back so that it contacts at a lower fill level.
But I think what you are seeing is typical.
This is in the the Technical archives:
Trouple Shooting and Replacing Fuel Level Sending Unit