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If your 740 has LH 2.4 fuel injection, you have the RPM sensor. I don't know exactly which model years have it... you could check the FAQ, or just take a look on your car. Here's what it looks like:

That's the view with distributor removed... other end of the wire is a connector along the firewall. 10-minute job to replace... part is maybe $27 at FCP. Mine bit it when my girlfriend was out shopping on Christmas eve a couple years ago :<
- Brian '93 945T
PS - If you have an older 740 with LH 2.2 and no RPM sensor, you will have something called a Hall effect sensor in the distributor, which apparently can cause similar problems... see the FAQ for more info.
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