The story so far:
Can't get inspection sticker for '83 Beast 'cause it won't hold proper
rpm in neutral.  Goes from 1300 to 3000.
Also, note weird starting problem, will start cold, won't hot unless I
switch to slighly stronger #2 battery.  #1 has plenty of cranking power.

Got lots of good suggestions from the list.

Also check with local (Ft. Worth, TX) mechanics for their opinions:

VW dealer:  Yes, it's a dead spot in the air flow thing, but we don't
work on vehicles over 10 yrs old (sic).

Mechanic who installed the engine:  Yes, but could also be the ground. 
I'm booked for 3 weeks.

Tim's German Automotive: Sounds like the FI, but we don't repair 'em, we
just replace them, and it's expensive!

Here's the thots:

1. Dead spot in air flow meter thing.  That's my best guess too.  Also
what the VW dealer told me last year.  Had trouble getting the top off. 
List people assured me it can be done.  So today I LEANED on it, didn't
budge. :-(  While at it, I wiped the down wind air intake clean.  Dirty
(crankcase stuff) and GRITTY!  Don't like the idea of all that grit
going into my engine!

2. Bad ground.  Could be.  I can't find anything that looks like a
ground strap.  Battery grounds look OK.  Work my way to the heat sink
thing, looks like a problem waiting to happen, but can't find anything
wrong

3. Distributor.  Nothing wrong here that I could see, except rubber boot
where the 3 little wires attach broken, connection seems to have clean
grease on it.  I clean it up.

So I'm standing there scratching my head, when I have one of those
miraculous revelations, and go straight to the problem!  On the
throttle, the top little switch!  Clicks (on or off?) when you open the
throttle.  Disconnect and the problem goes away!

So I run down to the local inspection guy, but he's booked for the rest
of the afternoon.  Try tomorrow.

QUESTIONS:  What is this thing?  Do I need it?

And it starts everytime (so far!)

TBill (Hindi for 'He who does not understand FI)

***Still looking for a good mechanic in the Metroplex!***