Can you post a link to where you got the Service Kit. FWIW, I have the exact setup as you down to I think the same cam except I stroked my to 393. When my engine builder and I got on the phone with comp cams they warned about the lobe separation and rough idle with EFI. We ignored that and proceeded since the cam showed good low end torque that I wanted. I never had the surging idle like you have when going into closed loop, but I spent many hours getting the best possible idle set and tuning things in the computer. It doesn't like it below 850 and will die if I take it much lower. It is very drivable now and oh so fun when I hit the throttle. But, if I can get it down to 650 - 700 that would be awesome. Thanks.
Got mine off ebay
http://www.ebay.com/itm/BRAND-NEW-O...ash=item541dc0b205:g:xSEAAOSwPhdVSaye&vxp=mtr
I did some additional tinkering with this and now have it idling at 750-800. She bumps up 100 RPM when the cooling fans kick on. At 700 I had a small issue with it on hot startups. The idle would drop low and stumble on startup then settle back down. I didn't like that so I bumped it up just a notch. It did fix my surging issue and return to idle when coming to a stop is much quicker than before.
This is from Garry "EFI Guy" on how he setup my tune
Your base idle speed is 672. But you will rarely see it that low. The PCM will add to desired speed for various conditions like temperature, time since start, dashpot, a/c, fan, etc... It only bumps idle speed 50 rpm for A/C. I would expect you to see around 750 most of the time.
I do wish it idled just a bit lower than it does now and it did before the cam swap. The cam just like more air at idle.
The kit has two adjusting screws. I have one closed off and one adjusted as needed. The kit says to knock out the "plug" for 5.8L but the kit was designed for one purpose and I'm using it for adjusting to my cam so I left the plug in.
I'm sure I'll end up tweaking on it some more but for now it runs great and I'm loving it.
Tim