I did the same upgrade on my 226.
You will have to run the harness for the fuel sending unit through the rigging tube to the back of the boat. The sending unit needs to be installed between the fuel filter and the motor. You will need to cut the fuel line, install the brass fittings in the sender, connect the fuel hose to the brass fittings, and double clamp the hoses. The sender mounts to the boat with two screws and needs to be mounted horizontally level.
The gauge itself is a plug and play deal. Remove the old gauge, disconnect the wiring and the hose for the pitot tube, plug in the new gauge and mount it in the dash.
If you want to get fancy, you can connect the gauge to your NMEA output and get your speed readings that way. Yamaha makes an adapter plug with 2 leads, or you can cut the black plastic plug off the back of the gauge and connect directly to the wires. If you do this, you need to also plug the pitot tube hose so water doesn't get pushed up into your dash, and you also need to change the DIP switch settings on the back of the gauge to tell it to look for the NMEA data.
I never calibrated mine....it was pretty accurate right out of the box.