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At first I thought the same thing about air leaks so I did verify, with a smoke machine that there were no leaks. First attempt identified the decel valve vac line and the cruise control module line completely disconnected, both were corrected a few months prior. As of now I have not repeated the smoke test but do get a good drop in idle speed with the removal of the oil cap.
The problem seems to be isolated with the Lambda system. You can actually easily feel when the system goes into closed loop mode as the surging starts immediately. One curious fact is the longer you drive the car and the more heat you get in it the less noticeable the surging becomes, but it still exists.
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