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535is Driveability Problems

I just installed a new Bosch idle control valve in my '88 535is (55K) hoping 
to cure an annoying idle/driveability problem (it didn't help so I cleaned the
old one up and reinstalled it, car runs the same maybe slightly better). 
Symptoms: Idle tends to vascilate between 650-750rpm and the driver can
perceive a slight shaking of the car due to the idle while at a stop. The car 
stumbles slightly when cold and I think I'm hearing a slight backfire before 
it's warmed up. I've also detected that it doesn't pull smoothly once I'm 
around approx. 2700rpm. It feels like the car pulls....hits 2700rpm and
begins to lose power then pulls through 3000rpm.....and loses a little torque 
andthen begings pulling thru the rev range again. Granted this is such a 
slight loss in power it's probably imperceptable to most, but I want to fix it 
unless I find out that "they all do that." I've checked for vacumn leaks and 
found none. I've installed new Bosch Platinum plugs and increased the gap as
advised. What else am I missing? Also, any remedies for the "hard to shift into
second gear when it's cold problem"? Any thoughts on installing a K&N air 
filter or other mods i.e.,short shifter kit, chip, etc.?

FOR SALE

'83 533i Automatic, Black/Natur, 87K, Alpine stereo, Amplifier, Equalizer,
Mint, Records, Garaged, Southern car (TN), $6950. E-mail or call 800-441-0641
for details.

Evan Evans

ewe@domain.elided