Turns out the PO was so rough on the speedo he actually bent the dash. What I found was one of the screw went in too far and was rubbing the rotating magnet slightly.
So I found a couple lock washers the right size to shallow out the penetration, and while I was at it I put some synthetic clock oil on the center shaft. Turns out a small 4sided tork bit is the perfect size to run the speedo, so I bench tested it and it runs smooth as silk. Imagine my disappointment when I installed the dash and the original cable and it still flutters. So I fitted the new cable on the speedo and put a drill on it and it works perfectly. So its either the cable or an erratic signal coming from the trans. My next step is to permanently install the new cable and see if that solves the problem.
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