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So the speed gauge in the dash and the speedometer cable have been replaced. Well, the only thing left to my knowledge would be the geared speed sensor in the transaxle.

I have the same problem. Replaced the speedometer cable but to no avail. I then took the speedometer out and used an electric motor to drive it on my bench and noticed that the part that is driving the needle (driven by a magnet) starts vibrating at certain speeds. On further investigation I found that the bush on the panel that the spindle goes through ( just behind the needle) is worn and hence the spindle/shaft does not run tight and starts vibrating/rattling and then it sometimes swing up and down. When I lightly touch the needle it stabilizes for a while and then starts vibrating again. The needle is not driven directly, but through a magnetic coupling so the slightest interference can cause problems. It seems the only solution is to replace the speedometer. Unfortunately you have to replace the whole cluster. I thought I could do something about the bush, but it is too delicate and you will have to remove the little coil spring which means the speedometer will have to be re-calibrated.

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Q: What else can be wrong with spastic speedometer needle on a 1996 Ford Escort station wagon the speedometer cable and cluster have been replaced and the speedometer still doesnt work?
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