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While I am not a cruise control expert - not even close - I did install a volvo system on my 1988 244GL AW70 last fall, and it works.
From what I remember, there is little chance for the problem to be slack in the linkage servo-to-gas pedal. You have hit the bases on the vacuum part of the system. That leaves only the electrical side.
What about oxidation on contacts somewhere? Maybe on the connection to the speedometer?
What about the vacuum accumulator having a tiny hole in it?
What about the vacuum source being too small a hose?
Does it hunt at all speeds? Mine does at lower speeds, 30-45 mph, then it dampens out to a steady speed (given level roadway). Seems to hunt very little, if at all, at higher speeds.
At higher speeds the manifold vacuum might be lower, and that could contribute to the problem, methinks.
Just my 2-cents.
Good Luck,
Bob
:>)
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