YES! Mine does the same thing.
Your electric switch on the handlebar switches a valve at the bottom of the tank under the seat. Listen to hear it clicking. If it clicks, odds are it is working fine. IF not check connections, for power etc.
That mechanism at the bottom has two fuel pickups. One tall (FUEL, top 3/4 of tank), one short (RESERVE, at the bottom of the tank). If the taller pickup has a crack, or has broken off, which apparently happens, then you end up gathering gas from the bottom of the tank the entire time, thus eliminating the reserve area feature. You have to take the part out and fix it or replace the busted peice.
I have not done mine as yet but I will be and I will post the photos when I am done at a little page I made for 535 bikes.
viragotips.googlepages.com
