I'm guessing that you have seen these two threads:
http://www.allfordmustangs.com/forum...ing-223-a.html http://www.allfordmustangs.com/forum...-223-loss.html
Several others and I also had this problem and by replacing the DIS module the tach cleared up.
If you have replaced the DIS did you get the new one checked to make sure that it wasn't bad off the shelf?
Also, maybe you don't have it mounted on the manifold with some of the thermal paste that helps get a good connection and keeps it cool (someone said that it need a grounding contact - I'm not sure about that but either way it will help keep it cooler).
I can't remember for sure, but when my DIS was bad I think that I had a similar problem trying to run some of the diagnostic test because the rpms would bounce around. But I don't really recall if I got a trouble code for that or not. I assume that you also previously got the 223 codes that the rest of us got and that went away when you replaced the DIS...
Did you replace the DIS and the coil packs with brand-new ones or second-hand? I think you can get the coil packs tested at some auto parts stores also (autozone maybe). Like I mentoned in my other posts I had to get them to test my DIS about 5-6 times in a row before it failed. But that is what it did in the car also, the tach and check eng light would come on and go off intermintenly.
On another note, since you mention the tach and you didn't say that the car was running bad at the same time... (in my case the tach was just reflecting how the engine was actually running - crappy) a long time ago when my car was still under the mfg warranty my tach started acting up (bouncing around etc) and the dealer replaced it with one out of a 5.0. Then it read steady but only at half of what it should have. I had to take it back and they put in the right part... All this to say, are you sure that it isn't just the tach?
If you've already read the two threads at the top and none of the rest of this helps then I'm at a loss.
I'd start blaming the tach itself - or maybe a broken wire somewhere?
Maybe some auto store or shop can test the tach itself.
MB