I believe it is a grounding issue. I've found that if I turn the blower on High, it seems to either stop or greatly reduce the jumping of the needle. I haven't chased down where the ground points are, but maybe the speedo and the blower motor are grounded to the same location.
I'm about to start this adventure as well, but have another question that I've not seen anyone ask or address yet. Since everything on these trucks is 30 yrs old, is there any wiring, other than speaker wires, that should or can be replaced or looked at while the dash is out? Thanks in...