Was 2007 still a cable pull throttle and not throttle by wire.
You never explained the events that take place during an abnormal high idle event. Lets start with a stone cold bike. Standing still, when started, does the bike have a stepped up idle during warm up like it should. As long as you standing still, does the engine idle settle down on it's own while warming up like it should. It should come off "choke" on it's own and idle down to normal.
Does it.
Now lets fast-forward to a engine that is fully warmed up. You start the bike and the engine speed is at a normal idle. As long as the rear wheel is NOT turning, you can twist the grip (race engine) and the engine returns to a normal RPM. But once you set out moving, the lowest RPM NOW becomes 2800. Once the engine goes above 2800, the rpm never comes below that point until the rear wheel stops turning.
Does it.
Entry point #8-2nd sentence implies that your having this bike serviced by a dealership. If it is at a dealership, their Digital Tech (or even a SEST will work even better) tells you what step number the ECM believes the IAC is at during any running RPM. When the RPM is at 2800, what step number does the ECM think the IAC is at?
It is easy to view the screen and seen what the step count is vs the RPM on the tach. Or using play back mode with a SEST VCI it is even easier.
If your no longer at a dealership, your Indy will at least need a SEST, VCI, or a HD-41199 LED IAC tester to see what is going on.
As the "step count" goes to Zero, the pintle of the IAC is fully extended thereby cutting off the throttle body air bypass and lowering the RPM. If the step count does not match the RPM range of the tach, then you have a bad IAC. You really need to see what happens to the step count when the wheel stops turning. (This can very easily be done with a SEST (VCI) in record mode)
**The important thing to realize is the IAC does not send any position information to the ECM. The ECM sends out enough steps to perform an IAC "reset". It now uses that position as a reference point. This explains why a key re-cycle (entry point #12 last sentence) temporarily clears up the problem.**
I am not there in person but based on what you have said, I have this feeling the PC is still hooked up at this time. If that is true, in my opinion your making a big mistake by doing that.