Ok, I connected up the external tach that i found in the shed

In adjusted the idle speed to about 700. Now the car idles at about 700 for about 20 seconds, then falls to almost 400 again...so i tried adjusting again, same thing happens.
I ran the diagnostics check, all ok, got the 11 signal.
The idle is not very good, its a really rough idle, it stutters now and again, also, the revs climb about 50 revs, then fall again after 5 or 10 seconds...wehat would be a possible cause of this? I know the plugs and leads are ok,, could it be the dizzy? I have no idea when it was last replaced. Any of the sensors gone maybe?
Please help, its not a big thing, but it's VERY annoying having a really uneven, rough idle, it doesnt sound nice at all!
Thanks!
Oh yea...I am doing all this when the engine is hot!