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I had the EXACT same symptoms with my '86 740 over the summer. It was right after I replaced the timing belt myself. The symptoms were exactly as you have described. Zero power, no black smoke, car seemd to run fine but, in reality it wasn't. My idle was a bit high too - I think it was around 1000 RPMs and I couldn;'t get it any lower than that.
My belt looked to line up perfectly at TDC using the white dot on the rear cover of the timing belt cover and the tick mark on the crank pully looked to be "right on" Well, it wasn't and it took me a few tries to get the car to run right by moving the upper timing mark back and forth (before and after) one tooth at a time while keeping the crank lined up perfectly on the slot/tick mark.
Like I said, it took me a few tries to get it right but when I finally had tehm lined up the car ran perfect and those "nasty symptoms" you have described (and the ones I had experienced) went away.
Try it if you want to, it is a PITA but, it is what it took to straughten out my dilemna.
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'92 740 B230F Wagon::'92 B230F 240::'86 B230FT Wagon (RIP-Parts Car):'83 320I::'79 320I::'81 320I::'74 2002::'70 Torino GT Convertible(351C)::1970 Dodge Dart GT 340::'70 Monte Carlo::1979 Dodge Tradesman B300 Custom(360)::'84 SAAB 900S::2004 Dodge Dakota
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