Man, we have the same car, and I have never achieved fuel economy of just under 30 mpg. Even driving to Las Vegas with the cruise control pegged at 65 mph, I still got just 25-ish. I'm averaging about 21-22 mpg since I've owned the car, so I think your fuel economy is in the normal range.
A fluctuating idle is generally caused by either a vacum leak, bad mass air meter, or bad throttle actuator.
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Paul S.
2001 E430, Bourdeaux Red, Oyster interior.
79,200 miles.
1973 280SE 4.5, 170,000 miles. 568 Signal Red, Black MB Tex. "The Red Baron".
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