Jason, sounds like the cable needs lubricated. I would take it back off and pull the cable out of the casing and put a liberal amount of grease on it. Doug

Two additional possibilities, if that doesn't work:

The speedometer "head" itself may need lubrication (or even repair). I think there is a hole in the back of the housing, into which you can insert some light oil. (Probably wouldn't hurt to do that anyway.) You will of course have to lay down on the floor, get a work light, and work on your back to do this.

Or, you might have a cable that is just slightly too long, and it's binding up against the input fitting at the speedometer, and whipping around inside the cable housing. This can be a real problem as I had it happen to me once. In short order the cable started twisting around itself and jammed itself within the cable housing, so that I could not pull it out to replace it. Had to find a new cable housing which took weeks to do. SO, just for fun, untighten the cable housing where it screws to the back of the speedometer, far enough that it still remains connected to the speedometer. This will relieve any pressure caused by a too-long cable. Then drive the car and see if the "bouncing" stops. (If on the other hand the speedo no longer shows ANYTHING, you've untightened the cable housing too much!)

My bet is that (as Doug says) it just needs lubricating. Be sure to use the correct speedometer lube which is almost like a penetrating oil, not some heavy grease!

Is there a name brand on the oil or what do u recommend?
Thanks Jason

I think I used CV joint grease when I did it but if you want something special with graphite etc might go with this:

http://www.acehardware.com/product/index.jsp?productId=3506024

white lithium grease in spray can has long tip that you can stick in cabel works well no mess very very light grease

The white lithium grease is probably okay but it might thicken in cold weather and cause bouncing of the speedo needle. They may special speedo cable lube that is (I believe) simply graphite which is carried in some sort of liquid, maybe alcohol. You might simply ask at your local parts store.

One question: assuming the cable you bought was the correct length for your car, did you give the cable a little twist once you slid it all the way down inside the cable housing? That is necessary, to seat the squared end fitting into the mating part in the transmission. If you don't, then the cable fitting ought to eventually drop into the transmission fitting but you never know. If it didn't do so, the cable would be"too long" and would jam up against the speedometer fitting at the top, and whip around, which causes the "bounce".

Jon, You are correct. Stay away from any grease. Use graphite that is used on door locks... As for the speedo head, there is speedo head lubricating oil. I know because I have a quart . Any very light weight oil will work. Even kerosene in a pinch.

I have found that if you remove the inner cable, and drop it in a bucket, cover it with automatic transmission fluid and let it absorb the fluid for a day or two - the best lubrication I have found for an old speedometer cable. I've also used 3 in 1 oil to lube the speedometer head with good results. There is a small open hole in the top of the connection nipple on the back of the speedometer head - saturate a cotton swab with the 3 in 1 oil and wipe it across the open hole a few times - the oil will penetrate the mechanism of the speedo head and silence any noise from that area.

Thanks to all I will try these I soon as I get time ...

You have to remove a small brass cap that sets in the hole. Remove speedo to remove, drop 2 drops of machine oil and replace cap. If left open dirt and dust will get in and jam the shaft. Walt.

Just to let everyone know ...Dorian put wd-40 in the speed-o to lube the and get the noise to stop. The speed-o is running maybe 2-3 mph fast ...is there any way to adjust or have it calibrated to get it correct?

Send it to a reputable shop and have it calibrated.