Just read thru the thread forwarded to me from Rick.
The system is identical to what we have posted on the binderplanet.
With the use of the 8 pin and the DS distr it has full timing control.
If everything is just as described and the idle still jumps with the IAC driven closed and unplugged, then the only thing that can be changing is the timing based on a change in load/vacuum.
To start with i would recommend going to the
FAQ's on the binderplanet. First hit the wiring FAQ and grab sheet 1.
It will list the Key on and engine running voltage checks. Do both.
Next hit the parts required FAQ and grab the table for the MAP sensor and make sure it is within specs.
I have not seen a location listed for the vehicle so i don't know the alt. But check the local weather channel.
I would also plug the vacuum modulator and remove the map and shake it with the nipple down to see if any liquid is in it. Tranny fluid from a bad modulator or fuel from the sensor mounted too low.
The map needs to be mounted above the center rear TBI vacuum port where it's connected.
The nipple should be pointed down if possible.
When all is checked, then I would go to the initial setup procedures and follow them.
If you have a laptop and the data cable, then you should also follow the how to tune FAQ for what data to log and save.
But you need some real trouble shooting to seperate fact from fiction.
The position of the transfer case lever or rev or drive have no affect on the system.