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I have noticed this here lately, needle will move slightly up and down while driving. Does it sometimes, sometimes it doesn't. Truck seems to run fine.
The tach in my truck will move in about 20 RPM increments at steady speed as well. It has since the truck was new. I think it has to do with the tach being driven by the PCM - being digital, it probably gets its signal to display to the nearest 20 RPM or so.
Just my theory - it doesn't seem to affect engine perfomance at all.
Sounds like i am not alone then, seems like since i paid this thing off it breaks this or that alot here lately. Just wanted to make sure something else wasn't about to break... lol
Mine has done the same thing since I picked it up 4 years ago (with only 11 miles on it). 100k later, still does the exact same thing. I think it is what RustyJC said, it is just a digital read out spit up in 20rpm increments that causes the choppy movement.