My 01 325i (stick shift, 46K) has this problem esp when cold and also when I'm in traffic. RPM is stable most of the time but when I'm in traffic or parking where I have to gas it a little to get it to inch forward often the rpm drops to low 300s then back up pass 1000 and then back to 300 and then up. It doesn't stabilize until I give it some gas. One time it even died. No check engine lights though! Any help appreciated.