Skinner.
I've had similar bouncing needle problems with tach and speedo on my 1982 GS650GL. Both tach and speedo are the magnet speedcup kind.
In the case of the speedo the speedcup had broken off of the needle post, so as the speedcup was spun by the magnet it would only sometimes catch the post to turn the needle. I tried using JB weld on the connection point, but after a few days it came loose and the speedcup got all shredded up on the sides of the speedo frame and is now completely destroyed. If I were to do it again I may try a bonding agent that is more flexible than JB weld. I documented the process here. http://preview.tinyurl.com/nywa6u4
In the case of my tach, the weld point is weak between the shaft holding the bar with the spinning magnet. It's almost as if the connection point got corroded over the years. I've yet to fix my spinning tach needle as I haven't got around attempting to weld it fixed.
Good luck.
-Will
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