I had that same speed-o jumping issue with my sled, your issue could be similar to mine although there are a few others potential problems like a bad speedometer or flakey 90 degree feeder or your driveshaft bearing could be going.
I had taken my sled to a yamaha shop to have the Driveshaft bearing replaced and they also replaced the speed-o key and insert. The speedometer started bouncing after a about 30 miles and when it wasn't bouncing it was at about half speed and then it stopped completely.
I took the 90 degree speed o feeder off and found the insert and speed o key 1/2 way out of the drive shaft. you can see the pictures at
http://www.hardcoresledder.com/forums/inde...howtopic=331440 . When I pulled the insert out it was bent. I bought a new insert and speedo key from polaris ($19). I also found the new key was a little longer than the one from the Yamaha dealer so there is no room for the insert to loosen off with the 90 degree feeder on tight.
Was out yesterday for the first ride since the change and the speed o worked the whole time and the odometer kept track with the other sled
Hope this helps