Welcome to NICO KT. I'm not familiar with the 97Q fuel pump set up but I think it's going to be the same as the 90-96 Q. Unless there's a broken wire on the fuel pump assembly (we've seen this) then I would say that you have a problem with the FPCU (fuel pump control unit) which on the 90-96 Q is mounted on the underside of the rear parcel deck above the fuel tank. You'll be able to see it from the trunk. To verify that the FPCU is the problem, unplug the connector and run a jumper from the connector pin to ground. The picture shows which pin to attach the jumper to and the FPCU is in the background. If the engine fires up with the jumper installed then the FPCU is bad.
For the improper fuel level reading.... That signal comes from the sending unit which is part of the assembly that was removed from the fuel tank to replace the pump. It's easy to damage the unit, or break a wire during the fuel pump R&R. Since you were getting the correct level before the change out I would guess that your unit has been damaged.
