yo KY,
Could be VSS;
PSOM Pointer Waiver TSB 96-21-11 for 92-96; "..The speedometer needle may waver and or a light surge may occur on some vehicles...This may be due to slight dents/chips in either the exciter ring or the Vehicle Speed Sensor (VSS) and air gaps between the VSS and the exciter ring. Any slight dents, chips, etc., in either the exciter ring or VSS will create needle waver. Measure air gap between the VSS and exciter ring. It should be 0.38-0.51mm (0.015-0.020"). Check exciter ring runout per the same ring gear backface runout procedure of the appropriate model 1996 Powertrain/Drivetrain Service Manual, Section 05-00. Make sure the exciter ring is mounted correctly to the ring gear. If runout is more than 0.1mm (0.004"), perform the differential runout check per the procedure in the appropriate model Powertrain/Drivetrain Service Manual, Section 05-02A or 05-02D, to find cause and repair as needed. If all items listed above check good, replace the Instrument Cluster Assembly.
G7 CHECK SPEEDOMETER CONNECTOR
•Verify ground on Pins C1-03 and C2-01 with key in RUN.
•Inspect instrument cluster connectors and ensure proper fit. Inspect for loose or corroded terminals. Verify locking tabs are in place.
Is resistance less than 1 ohm?
YES REPLACE the instrument cluster
NO SERVICE wiring harness and fuses as required. VERIFY proper operation
Wiring Diagrams @
http://www.diesel-dave.com/vehic/manual/stj/stjd1014.htm
and
http://www.revbase.com/BBBMotor/Wd/DownloadPdf?id=4921