A broken cable end means cable replacement. You will have to replace the cable from the firewall hole down to the small cable that comes from the transmission. There is a rubber grommet that attatches where the cable goes through the firewall to protect the cable and keep odors from the engine bay from entering through the hole. You will probably have to take off the panel under the steering wheel and snake your hand up there to route the cable to the back of the gauge cluster. Take a look at the current routing before you rip out the old one.
The cable runs behind the block and down through a couple of clamps attatched to the body then runs over the exhaust to the small cable. If you have headers like me you will want to wrap something like heat tape over the cable or it might melt like mine did. The melting cable cost me a couple of hundred in repairs and parts.
The bouncing needle could mean the plastic output gear is getting worn and is slipping. Also check the crimps around the cables where they meet by the exhaust. If the crimps are going bad the center cable could be binding against the outer shielding and that could ruin the plastic gear. My plastic gear went when my cable froze. It froze the plastic gear which lost the battle with the inner metallic drive gear.
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