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In a nutshell, yes. A rich mixture will definitely cause idle hunting. When you had the co adjusted to pass inspection, it is likely that you're Air to Fuel ratio is not correct. Also, a vacuum leak will cause the same dilemma. I'm not sure what you mean by the absence of "smoke", but in any case, the presence or absence of smoke is not an accurate gauge of whether you have a vacuum leak.
do a search on "idle bounce", it's easy to find. The thread is about 6 pages long, but it is very informative. Somewhere on the fourth page I believe, is where the air/fuel mixture is discussed at length, and is relatively simple to adjust.
I'm mostly referring to Carreras with the DME, though...CIS cars with vacuum leaks are a bit notorious in this department, IIRC.
Good luck, and keep us posted.
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STONE
'88 Cabriolet, using EP Slick 20w50 partial synthetic Snake Oil...just as Rommel intended. 
Deny Everything; Admit Nothing; and Always Make Counter-accusations 
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