PapaJ
One of the first troubleshooting steps was to take a dremel tool and removed the undercoating under the cab where the ground is attached. It made no diffrence. Good catch.

Im still thinking the spacer I made for the needle to clear might be a problem. It keeps the bezel from touching the gauge housing once installed in the dash.

Had to step away from this gauge due to frustration,
Went to a car show today,

Came home and made a 20 dollar seat cover for the truck. I hated to cover up the green diamond tuck my uncle installed in 1975

Installed a new head liner also.

Ill get back on this gauge problem tomorrow. Next step is to run a seprate ground to the gauge housing itself, as suggested earlier.

If that dose not work Ill have to call fail on this new gauge.

Thanks againg for all the tip's and suggestions.