You likely still have too much air passing through. Is this a slow steady up/down even surge or a fast (once every 1 to 2 seconds) surge that ramps steadily up to an RPM threshold then drops quickly and repeats.
If the BISS is opened beyond a threshold that the ISC can control, then the idle will start oscillating. The ECU sees that the idle is too high and probably attempts to reset the idle by cutting fuel. It will ramp up until it hits about 1500~1800 RPM then drop rapidly to about 800 then repeat over and over.
I know from experience that this can happen from adjusting the BISS when the engine is not in Idle set mode. It will also happen if you have too much air bypassing the butterfly. The FIAV usually goes bad and amplifies this problem by allowing way too much air through all the time(its supposed to actuate a plunger as it warms up and the wax melts. A bad BISS O-ring will also cause this problem. As will a vacuum hose leak past the butterfly. An incorrectly adjusted CTPS butterfly clearance as well.
Turn the BISS inward a half turn at a time (with a few seconds in between) until the surge stops.
If the BISS is operating correctly the idle will go down until the engine stalls. If the engine will not stall there is too much air bypassing the TB butterfly.
If the surge stops as you turn the BISS down then you've gotten under the threshold that the ISC (assuming its fully functioning) can control. The RPM at this point will likely tell you how much the leak deviates from what the design is. Remember stock idle is 850 I think. (I don't think my car ever idled that low, it idled at 1050 RPM when I bought it.)
The bigger the leak the less impact(change in RPM) the ISC will have across it's full range of motion. This can be to the point that the ECU cannot drop the idle low enough that it feels it must reset the idle. The ECU is simply following a list of instructions of what should happen during idle and in this case endlessly repeats the same steps.
The short list of most common problems are as follows:
Bad seal or incorrectly adjusted BISS
Bad FIAV
-requires blocking off FIAV
Bad ISC
-Test, replace. A bad ISC can destroy the ECU facilitating repair and vice versa.
Bad ECU (incapable of actuating the ISC until repaired)
-Odds are that if your ISC was bad, then this may be the culprit, and the ECU can/will kill a new ISC and vice versa.
This will require some more troubleshooting on your part. Break it down into smaller, easier to solve problems. Think in terms of what you do know about the problem.
And read the Idle Surge FAQ on the
VFAQ/Intake Section
If anything I've written is incorrect, please feel free to correct me.