Diving into the latest copy of Roundel (see http://www.bmwcca.org/ ) I found North Hollywood Speedo (http://www.nhspeedo.com/ ) that can fix the problem. It's either a recalibration of the speedo or a corrective ratio cable box. I'll know by this weekend. I'd rather not rack up double miles. Now I'm thinking that the previous owner had the same issues since swapping the LSD.
http://www.bobmodifiedbmw.com/ has a great pic of the speedo I really wanted....
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