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It moves smoothly 'til ~60MPH, bounces a little around 65MPH (at steady 65MPH drop to 60 and right back to 65) and drops down 15MPH or so at 80MPH. Tthen right back up. Two or three or fours times per minute.
It doesn't mean that necessarily. Most likely it's not the sensor. The sensor is very simple, it's just a magnet and is so simple that not much can go wrong with it.
Do you have a dead spot where your engine wants to die/choke out at 2-3mph? If so, it's a bad speedometer module. Mine bounced for about a month and then the motor started dieing on me on take-offs, had to replace the speedo unit, its a common problem. Do a search on the site for "bad PSOM" and you'll find some info.