Isn't wonderful how our Healeys keep our minds active?
Patrick, Check your tachometer connections at the coil. Are you getting any brief ignition firing issues when during the drop-off. It could be signaling an impending coil failure.
Phil, the speedometer needle is not directly connected to the drive cable or odometer. The cable drives a rectangular magnet that spins within the confines of a vertically-mounted metal pan that is connected to the needle and constrained by a very fine return spring. As the magnet is driven to spin, it induces movement of the pan and overcomes the spring. The needle should register (after calibration) as long as the magnet is spinning and inducing a sufficient force on the disk beyond the return springs counter force.
The problem: The drill is spinning the cable with sufficient speed to induce a needle reading and the transmission is not. I had this problem and it was caused by a short cable that, as other have mentioned, is worn at the tips and catches and releases and catches and releases. I also have experienced this in the action from a faulty angle drive. Although everything is new, I have had to returned 2 consecutively-delivered cables with slightly undersized tips that would appear to be turning sufficiently when not connected and not turn or produce needle movement when connected. Although you have viewed the movement of the cable and odometer by taking the back off the speedometer, I would suspect the cable may not have driven the magnet fast enough to induce needle movement. Also, I would suspect if when buttoned up and installed in the dash, the cable would be even slower.
If I remember correctly, I believe in the past a few of our posters indicated having a longer cable made up and bypassing the angle drive entirely with great success.
Again, I am hypothesizing based upon suspicions,
Good luck,
Ray (64BJ8P1)