When the idle speed increases, it's because more air is getting in there somehow.
You don't mention the IAC, I assume you've watched the IAC and it's position stays constant.
I also assume your timing trim is set to zero...? I'd have to look, but I think the timing trim can be set to be negative, so that the higher the idle, the more timing it gives it. Don't have a Calcom installed on my new PS yet, so I can't double check, but have a look at that. It's hard to imagine the idle getting *that* high, though, and why it would only happen with the hood up.
So air must be getting in there somehow. Is there a vacuum line that could be cracked, and when the hood is pressing on it creates a seal?
Does your hood touch your throttle cable?
What about your throttle shaft? Is it worn? I once had a POS TB (manufacturer unnamed) with a worn out throttle shaft, and not only would air leak in around the shaft, but the butterflies would stay further and further open, much like you describe (except without the hood coincidence). The only way to get the idle back down was to snap the throttle (which was awkward thing to have to do in traffic jams, etc.).
If worst comes to worst, maybe you should make some runs with the hood off and take advantage of this mysterious extra power that appears from nowhere...
-Bob Cunningham
bobc@gnttype.org