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I recently had the same problem. I also had a bad temp. compensator board in the instrument cluster. When I pulled the cluster and fixed the comp. board, I also sprayed the electrical connectors and pins with contact cleaner (Pure Electronics) just out of habit. After I buttoned everything back up and went for a test drive, lo and behold -- no more jumping speedo. Rock solid like it was new. So I don't know if cleaning the contacts fixed it or just unplugging and plugging back in. There's a three-pin connector at the speedo.
Spraying the electrical contacts is a cheap fix. But it could also be a leaking electrolytic capacitor, as mentioned. There's a 220 micro, 16v, right there next to the speedo and that could be a problem. 15-20 years is a long time for an electrolytic.
It's pretty easy to clean the contacts in the back of the cluster without actually pulling the whole thing out. If you need more info post back.
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1986 Volvo 245
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