Are those two discs not supposed to touch? I'm not really sure how it supposed to work.

 

I'm not sure if they are supposed to touch or not. Seems when they do that is what causes my problem. My guess is that there is a bit of a magnetic something going on and the two parts work like a clutch.
I did get the new transducer and put it in. The speedo is bounce free and in the one mile test that I just did the CC worked just fine.
It would appear that the transducer was my problem all along. I guess I was just not able to repair the old unit no matter what I did. The old transducer was responsible for breaking the ends off of the tranny to transducer cable and caused my speedo to bounce. Taking apart the transducer and cleaning / lubing it would get rid of the bounce in the speedo for just a little wile until the unit decided to tie up again.

 

This is what I am finding as well. It works for a while then right back where I started.
I think your right the magnet pulls in the other steel disc and the copper one is a clutch somehow. I'm just not sure how it is supposed to work. I think if I could figure that out I could fix it. I may just end up with a new transducer as well.

 

[IMG][/IMG]

When I opened it up all looked good until I took the top half apart. It looked pretty rough and draggy.

[IMG][/IMG]

So I took a dremel and some polishing compound and eventually got it to look like this.

[IMG][/IMG]



I put it all back together and it turned much better than it had before. I re-installed it. I then took the cable from the trannie and removed it took the cable out of the housing and it was also gummy with old lube. I cleaned out the housing with copius quantities of carb cleaner then I cleaned the cable in the same manner. Grease up the cable and put it back in the housing, reinstalled it. Now no more bouncy speedo.[/QUOTE]

My guess is that the copper part and the iron magnet both spin. They should not touch. They should be seperated by the rod that is part of the copper assy. Again just my guess, the rod (pin) is perhaps starting to shorten due to usage and no longer keeps the copper part from hitting the iron magnet. When the two parts touch (as evedent by the witness marks that both you and I have been cleaning) the unit ties up and the speedo bounces CC doesn't work or the cable breakes. Again this is just a guess. I also noticed that the part that you drilled so you could lube has a tendancy to move in and out of the housing. The replacement transducer that I just purchased did not display that relative movement.