Have had the bike into the dealer 4 times now.

Replaced
VSS 2times
new speedo
new ECU
new connector pins on wiring harness connector to speedo, and traced wiring.

Still have oscillating speedo needle

Any other suggestions???

 

The only time I had any issues with my speedo it was "pulsing" when I had a loose ground to the battery. Just in case you haven't checked your battery connections yet.

 

Saw the same Speedo prob on a softail that had a bad battery in it.

 

Check the headlight and see if it pulses about the same interval as the speedo would at the same rpms.
Just hold the rpm and look at a bright wall , you may have a regulator that's switching instead of being smooth.
Definitely check the grounds and if the battery is more than 3 years old , suspect it.
Check the running voltage with an analog voltmeter (not digital) and watch the needle for the pulse.
Just a couple thoughts.
Mick