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To John Cooper

>>Any suggestions on which way I should install the thing?<<

I tested the switch the same way as you did, but in a container with a crane at the bottom so I could simulate fuel consumption and refilling. When positioned inverted your reed switch is closed and can start your pump through a relay. The pump will run until your float reaches its almost top-end position, - then stop.
Now when using your fuel, the reed switch will not close again and start the pump until almost in line with the sensor body.
That feature is what I have used in my KIS system as described Oct.13.
It is my solution to Marv's scenario #4...Auto fill with auto shut.off, cycling between appr. 8 and 10 gallons in a standard header tank, - but with less components.
Flying in turbulence should not affect this system except for turning the pump on a bit early should the float "dive",  which is unlikely.

Jens - flying out of Copenhagen