Testing completed at YSSY and YSTW in Australia.

Appears there is a bug or malfunction with the HSI in my copy or all perhaps. Ticket submitted.

For information for other users:

ILS Glide Path and Localiser are frozen at 2 degrees down for Glide Path and 2 Degrees right and needles do not respond to appropriate interecepts or attitude altitude changes on the ILS.

Dual RMI gauge shows accurate track course and relative bearing of navaids information by comparison.

Same problem when using VOR 2 degrees to right continuously and track interception poor but can be achieved but needle centre and course or track capture cannot be maintained with needle centre. Course needle will move to right and sit there.

Nav mode is selected on the Nav/Com Box and testing produces no needle shifts but appropriate test cycle on the DME.

737 is basically grounded for me until this problem for me can be resolved as unable to fly VOR or ILS approaches in the 737. Accurate navigation via VOR is also not possible.

As they say - bummer!  :(