ERmm,, my 92 has been doing the same thing- speedo eve since I bought it -- either not working at all or swings wildly from zero to whatever speed I happen to be going.
For mine,, this seems to occur mostly in cold weather, usually first thing in the morning. After driving for a few miles ( usually less than 5 miles ), the speedo needle settles down and everything seems OK.
I was originally disturbed by this and thot that it might be the sending unit on the tranny. However, I could only find ONE device that even remotely looks like a sending unit. I have an A340H auto tranny / transfer case in my 92.
I even went to the parts man at the local Toyota dealer and had him crawl under the 4R and look. He couldn't find anything but the one 'sending unit' , either. The scary part, is that ,, when he looked it up on the microfiche, the part listed there looked NOTHING like the part on MY tranny!
The unit that 'appears' to be the sender has 2 wires going to it and it is held on by 3 machine screws. When I removed the screws and took off the semi-triangular coverplate ( with the wires ),, there was a small disc inside about the size and shape of a U.S. nickel. This small, inner piece was not attached to the case or to the triangular cover plate. It fell out in my hand. I really couldn't see any noticeable defects. Heck,, I really couldn't tell if it even WAS the right thing. So, I put it all back together.
I realize this offers you little or no help, but at least you know you aren't in the boat alone. I'd really be interested to know if there is a solution to this problem,too. The speedo works perfectly in warm weather and at all other times.
Thanks
Mike in AR