Check the dashpot and it's adjustment. It's supposed to hold the throttle plate open (briefly) and slowly close it as you come off throttle... if it's not adjusted properly or the vacuum line or filter are misrouted or clogged it will hold the engine at around 2K.
EDIT: Actually, the shifting idle when stopped isn't consistent with the dashpot but I'd check it anyway.
The Check Engine Light will only stay on if there is a certain (critical) class of error stored; So check for diagnostic codes... info is in the MKIII FAQ section.
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Last edited by cre; 07-07-2011 at 11:45 PM.
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