Agree, sounds like an air mass meter failure - but you generall get a code 4 with that as well. I had similar symptoms on a 124 car that had a dead AMM and aged O2 sensor. Replacing the AMM greatly improved the idle and driveability, but there was still a surge. Replacing the O2 completely cured the idle. The car had about 120K miles on it at the time.

Code 35 and lousy running also sound like a vacuum leak to me.

How old is the gasoline in the tank? I'd probably go for a fresh fill, some fuel system cleaner, and a long drive before making too many judgements on the running qualities of the engine.