it was the sending unit. looked all nasty and corroded like yours. good news though, when I called nissan for the part, i was informed that there was a factory recall. So FYI to anyone out there, I am not sure of the year range, but Its at least 2002 xterras, there is a factory recall on the fuel sending unit. free repair. AAA paid for itself this year.

thanks all, happy trialing.