Ya I think we have a bad IAC. To set idle unplug the iac and mess with the air bleed screw till you hit about 600-700 rpm. Plug back in the IAC and it should jump up to 800-900. Also clear the code.

You may also have a vac leak spray break clean all over the intake and vac hoses. Lets say you spray a vac hose and the rpm jumps up that hose is leaking (it sucks in the brake clean and burns it bumping up the idle).