I had the same problem with my 67 GTO ragtop (orig owner)several years ago. Good move to disconnect it. I didn't, & the jumping around broke off the dial. Tried replacing the cable, housing, etc to no avail.
Finally had a mechanic take it out & sent it to a speedometer shop in San Antonio to fix it. Don't remember what they did, but they did get a different needle on it. It still jumps a little around 10-20 mph (esp in cold weather), but alot better now. Good luck!
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