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Richard, I have a similar problem with my '92 740 wagon.
Engine idles at about 750rpm and when I turn the AC it drops to 650-700rpm and shakes a little. The idling should go up to 900rpm with the increased load (ac on). My '88 240 does this and Bentleys manual states that rpm should increase to 900 with the AC on, but this is on the 240. The 740 should do the same.
I am going to the 700 FAQ's to see if I can find something. I'll let you know if I find something. You do the same if you find the answer.
Good luck,
John
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