'84 300d insane surging...

[quiettype]

Greetings,
I've adopted a red 84 300d turbo.208k,starts easily,idles nicely at 875 and shuts off with the key. The oil and air filter have been changed.Throttle linkage lubricated. I like this car and want to have it inspected and use it.

The problem is that when the rpms exceed about 12-1300 it will accelerate up to about 2k and then decelerate to 1100. If I rev it to 2k it will then jump up to about 4k and then decelerate. It is not safe to drive as it is. This scares the crap out of me. The other week I put it in gear and upon touching the accelerator laid out a patch of rubber complete with squealing and blue smoke.Not sluggish!

I am about 50mi from any mechanic and I have'nt any idea where to begin. Please help me! Thanks,Henry