So picture stolen from the internet, but I have highlighted where the idle screw and locking nut is. Providing the throttle cable isn't pulling on the butterfly for some reason the idle will be set by that screw. If the throttle cable was unattached the spring will close the throttle to the idle screw stop. The threaded block holding the throttle cable is for fine adjustment of the throttle cable tension. Don't believe the instruments, mine always displayed a steady 1100 rpm, but actually the ECU reported 850 - 900 rpm, so your 900 is fine. Making the idle lower made my cars ECU hunt making the idle very erratic. A 420 has a modified cam, so a 500 rpm smooth idle is probably to much to ask, couple that with the lightened flywheel and I bet it would almost be undriveable at slow speed. I can see why you think that way, after all its how all modern production cars get their CO2 emissions on tests. Don't forget to make any adjustment with the battery disconnected. Bending the throttle pedal and adjusting the throttle pedal stop is the way to get fully wide open throttle (or that lovely solution above)