I think there is some confusion here, so let's make sure we understand.
Newmem is describing his VOR head, not the DG.
Definately an avionics issue. Could be anything from the antenna to wiring to a bad "Nav" side of the radio to operator error.
Did you tune the Nav to the appropriate station? What was the range(distance) to the station? Could you hear the station identifier when turning up the Nav volume?
All these things would help in trouble shooting the problem. Don't assume it is the indicator, as these are pretty reliable. If you can find another Nav/Comm to swap into the panel, I would try that first as it is easy and cheap. Beyond that, get ready for a trip to your avionics shop. <img src="/ubbthreads/images/graemlins/grin.gif" alt="" />
