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I plan to install a new IAC sensor this afternoon in my 94 C4. I noted a gigantic vacuum leak in the intake track and the IAC seems to be the culprit. Do you have to do anything special during the installation besides disconnecting the battery. It seems like the end pintle needs to be extended to close up the gap to stop the unneeded vacuum. Does this sensor need to be pre-loaded to set it up properly or do I just screw it in.
I can't speak directly to the LT1 IAC, but on the L98 you had to have the pintle at a specified number of millimeters out from the body. I think the box had a small piece of paper with the number on it. There may be a short exercise to get the computer and IAC in sync with each other. Your manual is your friend here. Also check the tech tips, there may be something posted there. Good Luck.
The IAC is actually a motorized valve. The PCM opens and closes it (to varying degrees) to control idle speed. It is sort of a computer controlled "vacuum leak". When you discovered it was a source of an intake leak it may have been partially open and looked like a leak.
Adjustment is limited to a maximum spindle extension - see instructions that came with it. I know for L98's it's 1 1/8 in. Install it, start car, then turn it off. Start it again and the computer should have it adjusted. For older cars (like my 86) you have to drive it over 40 mph for more than 3 minutes for the computer to "learn how to idle".