Don - the fact that your needle pegs out (I presume you mean at zero) is a good start.. It shows you are getting a feed to the tacho board. The board has three feeds - 12V, earth and a pulse from the distributor (the speed of this pulse is of course proportional to the engine spark, and is what tells the tacho circuit board how far to turn the needle).
There are two possibliities I can think of. You're either not getting the pulse or the circuit board is stuffed and can't read the pulse.
To check for the first possibility is the easiest. Look at the terminal marked "tach" on the distributor, it should be connected to a single wire that runs to the tacho "filter" (a little silver canister that is normally bolted to the inlet manifold). Check that the wires into and out of the filter are not broken or corroded (they break easily right where they go in). Follow the wire and check its plugged tightly in to the wiring loom at the other end. If you have a ohmeter you can check the continuity thru the filter by unplugging it at both wire ends and hooking up your meter - it should be about 15 - 20 kOhms. Also, to work properly, the filter case must be grounded. So check its bolted cleanly and tightly to the inlet manifold.
Of course all this is pointless if you have no filter, as many people seem not to. As long as you have a wire connected between the "tach" terminal on the dist and the plug into the loom, then the tacho should work. There's a lot of opposing views as to whether the filters are really necessary. As i understand it they are suppposed to filter out radio noise AND protect the tach circuit from voltage spikes. Some say you can run for ever without one, some say other wise. For me, since I have one and it works, I use it. Simple as that. Don't want to fry my new board.
So if everything checks out there, the problem is most likely with the board in the tacho. You can get a new version of this board from Redline
http://www.redlineg.com/
This is where I got mine from - can't praise them enough for their help and advice..
But try and make sure it's not a problem closer to the engine fist, before shelling out for a new board and ripping the dash out! If you can get hold of another tacho gauge (some sort of aftermarket mechanic's style thing) you could hook it up on the "tach" terminal of the dist, to see if you are getting a signal. (This may not work" downstream" of the filter)
What you really need to make sure the filter works is an oscilloscope, but how many people have one of them to hand?
Good luck - Hope this helps!