Update - I pulled the SpeedCal back out and put in a 23 tooth speedo gear. The speedometer still bounces around by a couple of MPH but the motion is pretty smooth. I think that the drive gear of the used/rebuilt tranny must be worn because the bouncing is too regular to be an intermittent electrical problem. I think that the SpeedCal made the response worse since it must be expecting a clean input signal.
The big difference between having the 23 tooth speedo gear with no Speed Cal and the 18 tooth gear with the speed cal is that with the Speed Cal removed, the smooth variation of the speedometer allowed the cruise control to work properly. With the Speed Cal, the cruise control had a hard time detecting the true speed.
I don't think that there is anything wrong with the Speed Cal since it worked great for me for a year before I did the tranny swap. I don't think it could handle the variation that I think the speedo drive gear is causing.