If your odometer and cruise control are working then the speed sensor on the tranny should be ok. The speed signal that goes to the cruise control is routed through the instrument cluster so a good cruise control operation should mean that the speed signal is getting to the instrument cluster. I had this problem with my 93 LS 400, it would work randomly whenever it felt like it. I think your problem is definitely in the instrument cluster. On my car, the tachometer was also intermittent in operation. I pulled my instrument cluster and just cleaned up all the connectors on the flex-plate and generally tightened and cleaned up everything. This fixed everything, both tach and speedo worked for about a week and then started acting the same. I pulled the instrument cluster again and got out the soldering iron to resolder connections on the circuit boards , especially on the ground plane pcb traces. I made sure that I had good ground, power, and signal connections all the way through the circuit boards to the tach and speedo needles and so far, everything is working good at the time. If it continues to work for at least a month, I will consider it a good fix.
Curt