I found with my 94 B6 that the idle would go from 800-1200 when stopped almost like
an air hose is being pinched off then opening constantly.
Chasing parts didn't seem to solve it, the best advice I can give is to either play with
the timing/idle till you get it just right. Or you can unplug the Idle Air Control at the
rear bottom of the throttle body and adjust the idle manually at operating temp (make
sure the fan isnt on and you jump 10 and GND in the diagnostics box, use paperclip)
(Do not start car with diagnostics box grounded. Insert paperclip after car is started and
remove it prior to shutting the car off).
If you want to check error codes, insert the paperclip and turn the key to the on position
so the interior gets power but the starter does not crank. It will flash long 10's short 1's
and you can check components and see if all is well there while you are at it. Search
for more info on that, theres a really good write up by Shameem somewhere in the FAQ.
http://www.mx-3.com/phpBB3/viewtopic.php?f=24&t=65390 <-- that one
One other thing to try whilst messing with the idle/timing is to leave the headlights on
and try putting other loads on/off to get a good setting. I usually left headlights on and
the rear defog on aswell when setting idle to avoid it dipping too low.
Experiment.