I had the same problem on my 2002 CRD, exactly as you have mentioned with the dials going crazy for a short while but also I sometimes got a "ping" and engine cut out.
I discovered this only happened when I either turned on the wipers or turned on the air-con.
I traced the fault down to bad wiring in the harness somewhere..... probably caused by a previous accident.
What was actualy happening is that the ECM (PCM on a Gasser) was failing to regulate the alternator voltage properly to the battery. I installed a voltmeter into the front cigar socket so I could monitor the charge voltage as I drove....the voltage would rise to about +17 volts...the ECM would sense the overvoltage and drop power altogether and the gauges would go crazy.....this also caused the battery to overheat and vent a lot of water.
You may have something similar....check if it only happens when you perform some action and monitor your voltage on the battery at the same time.
