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Has anyone had their speedo not function properly, and by that I mean that the needle moves eratically. When stopped it does not always go to 0 and even while driving it somtimes moves in 20 mph increments and will just stay stuck sometimes. My car is a 98 6 speed with 16K. I did put in the white faces, but that was 2 years ago and the needle still fits nicely in the cutout, so I don't see that as the issue. No codes whatsoever and my scanners sees all systems as ok.
I've seen the same thing here though not nearly as bad, I'd describe it as not smooth and slow returning to 0. It's not bad enough to even really determine if this is intermittent or constant. I've never had the IPC out.
I'd definitely agree with checking the connection on the diff first. That said, if your car were an auto and your speed indication is really that erratic as reported by the VSS, you'd have all sorts of strange shifting behaviors too. Not sure what you might see on a six speed, the ABS stuff would be the next place I'd watch for odd behaviors since it also sees the VSS signal. You might try using an OBD-II scanner and examining the vehicle speed parameters, particularly the raw VSS if you can get it with your scanner. My instinct says it's the IPC.