AND THE RESULTS:
Sorry for the late response.....slow getting in last night.
The relpacement diaphram repair charge ended up being $120.86.....BELOW estimate....always like a good surprise there. On the repair, however, we batted 50%. The wild surging and jerking on decerleration are gone but the smokin' 240D is still a smokin' 240D. You were right. That diaphram repair did, in fact, need to be replaced.
Now about that smoke.....How does one get rid of the blue/grey beast on idle or deceleration while in gear? Rather embarassing when people pull up behind you at a stoplight then back off 20 feet. LOL!
As a liner note for Steve:
When I conducted that filter cap test the other day, I failed to mention that the car was not at running temp. It was idling just after a start.....maybe the answer to why the r's went up instead of down?? The idle speed is considerably higher when warm. Thoughts?