"Needle flutter" in the Talyvels can be due to insufficient damping of the pendulum. This is easy to adjust and I thought that I would document the procedure here.
The damping comes from a small drop of high-viscosity silicone oil (50,000 to 100,000 cSt viscosity, according to the patent). This oil drop is held by surface tension between the bottom of the pendulum (a flat surface) and the top of a domed cylinder which is threaded for adjustment. If there is not enough damping, you move the domed surface closer to the bottom of the pendulum. If that doesn't work, replace the silicone oil drop. A small tube of 100,000 cSt viscosity silicone oil can be found online at low cost -- I think it is used in the differentials of radio-controlled model cars. A Google search for "Losi Silicone Differential Oil Fluid 100,000 cSt" should find this.
On the new-style Talyvel heads, it's easy to access the adjustment screw from underneath. On the original Talyvel heads it is also possible, and that is what I am documenting below.
(1) Tighten the two locking micrometer knobs and remove the bottom cover
(2) Use a sharpie to mark the orientation of the leaf spring
(3) Loosen BUT DO NOT REMOVE the two retaining screws. Don't touch the central screw
(4) Remove one side
(5) Lift straight up to remove the other side
(6) Fully loosen the two locking micrometer screws. From here on, take extra care, as the pendulum is free to swing. It goes without saying (but now I will say it) that you should do this work seated in a clean, well lit area, with an uncluttered work surface and your tools at hand.
(7) Remove the two screws/washers that you loosened in step 3
(8) Support the bottom of the frame with your finger, as it wants to spring to the left, and remove the bottom leaf spring and post assembly with your other hand. Don't touch the pendulum! Since there is not much space for your fingers, some needle nose pliers are helpful to remove the leaf-spring and post assembly. Grab the central nut but don't turn it or loosen the post.
(9) Release your finger pressure to let the support frame assembly rotate to the left.
(10) Tighten the two top micrometer screws to swing the frame and pendulum out to the side
(11) You now have access to the adjuster for the damping, under the small spring finger. It has three holes spaced at 120 degrees that you can rotate the adjuster with.
(12) I use sharp-tipped tweezers in the two holes. Rotate the domed screw about 1/8 of a turn. Tightening it (clockwise rotation) reduces the gap and increases the damping.
(13) To reassemble, loosen the micrometer screws to rotate the frame back, then follow the same steps in reverse. To get the bottom post to fit into the slot, you will have to gently push the bottom of the frame back into the middle of the case. Be sure to push on the frame and not on the pendulum.
If you tighten the domed screw too much, you will block the swinging of the pendulum. It's not a problem, just back off the screw enough that it no longer interferes. If you can't get enough damping, remove the screw, clean off the old silicone oil, and add a new drop.
You can test the damping without reassembling fully, so once you have done it a couple of times, the entire process takes ten or fifteen minutes. You tweak the position of the damping screw, test it, and tweak some more until it's good. Each cycle takes a couple of minutes. The ideal position is "critically damped" which means that the needle settles in to the final value, without overshooting, but is on the verge of overshooting.