Well,more fiddling going on. The idle air valves are working fine - no more hunting idle during warm up stage so they did like a good clean. But,the engine will not tolerate TPS set at 0.5v - it will start with with a 2000 rpm cold idle and idle unevenly when warm between 1000-1200. I have set it to 0.30-0.35v and that seems to calm things down with 1400-1500 cold idle and rock steady warm idle at 1000 rpm. The cold idle still seems too high - what rpm other members cars have when cold/warm ? I don't know if tacho is reading correct or not but at least it's steady. I think I'll leave it like this for a while and see how things progress.
Regarding high idle, I recall that i experienced something similar. Maybe you have already looked in to it, but there is a provedure, where you unplug the valves and set the idle to a certain speed (maybe 700 or 800, I do not remember exactly). This cured the problem for me.