Surging Idle after Rebuild

[Plumberpat]

Here’s the details: 1990 (10/89) 325i Convertible
Just finished refreshing the motor: rebuilt head w/ 272 cam & HD rockers etc, all new belts, wires, cap&rotor - the works in other words. Get it all back together and it idles like total crap. Surges from 500-650 constantly. Once you get the RPMs up its better.

Get it smoke tested and find a bunch of leaks - bitch tube etc. Fixed those and it idles better but not great. It idles like a 1/4 mile drag car - lopey. Mechanic thinks it’s fuel (car has 208k on it). So I swap out the original injectors for some new Bosch units and swap the TPS. Still no love.

So I start testing the ICV (three wire). Voltage and resistance check out and I double checked the TPS as well - both good. Bentley says the ICV should be partially open with a warm engine and the key on. Mine snaps closed as soon as the key is turned to the on position.
Is this the issue?

Thx, Pat

[jbontke]

Are lifters are adjusted properly??

[ForcedFirebird]

Surging is a sure sign of vacuum leaks post-AFM on these cars.

[Plumberpat]

Smoke tested and fixed the leaks. After running for a few days the surging is gone but it’s a really lumpy 700ish rpm idle. I didn’t think a 272 cam would make it that bad. It’s stock (for the moment) other than the cam. Is this something that would be cured by a ssquid chip? Or should it idle better even with the 272?

[digger]

Chip to bump up idle speed