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The Speedo needle bounces at below 35 to 45 mph (no consistent point). I have had the speedo refurbished, a new cable and new 18 tooth gear installed. I also have a 90' degree speedo cable adapter installed.
I have an aftermarket cruise control from Rosta Precision Controls, there is a Rostra Vehicle Speed Sensors 250-4160 between the gearbox and the 90 degree adapter
My speed o was bouncing on my 79, and eventually stopped working. The issue that I had, was with the lower cable was bad. What happens is that the transducer (mine is the original) as it wares, puts additional tension on the lower cable, until it eventually breaks.
Now, my cruse control was not working, so i just put in one long cable and all is good.
I"m not sure if this helps, since you have an aftermarket system. Would it be possible to bypass the cruse to see if that solves the problem? I"m not sure if the cable is long enough to do that.
hope to swap a few bits around in the next day or so and see if that makes a difference ie put the sensor after the 90 degree adapter .. could be that the cable is bad but we'll see