Iac Problem

Dump the codes and see if you get a code 67 which is for the NSS circuit.

Dump codes sticky.
Look at the top of the 5.0 Tech forum where the sticky threads are posted. One of them is how to dump the computer codes. http://www.stangnet.com/mustang-for...codes-from-eec4-in-86-95-5-0-mustangs.889006/ I highly suggest that you read it and follow the instructions to dump the codes.

Code 67 –
Revised 2 Nov 2012 to add definition of the NSS functions for both 5 speed and auto transmissions

Cause of problem:
clutch not depressed (5 speed) or car not in neutral or park (auto) or A/C in On position when codes where dumped. Possible neutral safety switch or wiring problem. This code may prevent you from running the Key On Engine On tests.

External evidence from other sources claims that a code 67 can cause an idle surge condition. Do try to find and fix any issues with the switch and wiring if you get a code 67.

What the NSS (Neutral Safety Switch) does:
5 speed transmission: It has no connection with the starter, and the engine can be cranked without it being connected.
Auto transmission: It is the safety interlock that prevents the starter from cranking the engine with the transmission in gear.
What it does for both 5 speed and auto transmission cars:
The computer wants to make sure the A/C is off due to the added load on the engine for the engine running computer diagnostic tests. It also checks to see that the transmission is in Neutral (5 speed and auto transmission) and the clutch depressed (T5, T56, Tremec 3550 & TKO)). This prevents the diagnostics from being run when the car is driven. Key On Engine Running test mode takes the throttle control away from the driver for several tests. This could prove hazardous if the computer was jumpered into test mode and then driven.

The following is for 5 speed cars only.
The NSS code 67 can be bypassed for testing. You will need to temporarily ground computer pin 30 to the chassis. Computer pin 30 uses a Lt blue/yellow wire. Remove the passenger side kick panel and then remove the plastic cover from the computer wiring connector. Use a safety pin to probe the connector from the rear. Jumper the safety pin to the ground near the computer.
Be sure to remove the jumper BEFORE attempting to drive the car!!!