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Another common cause of erratic gauge needles is caused by a bad ground connection in the gauge itself. They use a long brass rivet to hold it together and to provide a ground. Over time the brass oxidizes and develops a bad connection which causes the needle to bounce.
A fix is to bypass the rivet with a wire going to the gauge shell from the connection on the small circuit board (that is part of the gauge).
A fine tipped soldering pencil (and steady hand) is required for the one connection. The other to the gauge shell will require quite a bit more heat. Also some shells have a gold chromate coating that might need to be filed or sanded off to get a good solder connection. If doing this mod, go ahead and do the fuel gauge as well as it suffers from the same defect.
While you have the cluster apart, resolder the ground connection shown in the 3rd photo. It provides ground to the right side of the cluster and develops cracks as shown. Best to lay a fine piece of wire across to give it extra strength.
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