Perhaps you could try replacing the sensor?

Check the sensor wiring for continunity?

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GT4DC Events Co-ordinator
1996 ST205 UK

its getting to that stage, just wanted to try the easy fixes first before buying one incase its not that, and the circle continues

Use a multimeter and check you have power & earth down to the plug.
After that, it's down to tracing signals. You may be able to simulate a signal with the plug disconnected from the sensor by tapping the signal wire to earth (or maybe to +)
Alternatively, you need to get all 4 wheels off the ground and leave it idling in 1st (obvious saftey issues to beware of) then you can check pulses out of the sensor (push a pin through signal wire insulation to connect) and see them arrive at the dash.
Circuits are linked in the other post I linked above to trace the wires.

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If at first you don't suck seed, try drier grain.