If I remember right, the tach is driven internally by a rotor spinning inside a housing and the needle is actually moved by magnetism as the rotor spins and drags the housing around against a calibrated spring. I suspect your housing and rotor are bumping each other due to worn bushings. Another possibility is grit or debris between the two that is pulling, then dropping, your needle. You sure won't hurt anything with a clean and lube in there. The parts are delicate but I believe common to later models in that part of the tach. I would see no reason you couldn't swap parts over from a newer model once inside.