so, when I am at a light in neutral and the a/c is on, and the compressor kicks on, it really drops the engine idle speed almost but not quite to the point of feeling like the car is going to stall before the idle comes back up.

any ideas if any thing can be done, solutions? known issue? thanks

 

This is a normal operating event.
When the A/C compressor kicks in, it produces more load on the engine.
Since the engine is in the idle mode, the driver will feel difference it the engine RPM.
When driving at 70 mph, the compressor kicks in but the effect is not felt because of the higher RPM and speed.

 

I don't even use the A/C on my R50, it becomes almost undriveable in city traffic. When it's really hot in town, and when I need to pass someone on a steep incline at high altitude are the two times I wish I had an R53 (or a Mustang GT)

 

i realize that it is a 'normal' event to feel the load on the engine, but this is as Danny says, almost un-driveable. its such a significant tax on the engine it just doesn't feel like any other car Ive experienced this in since it pulls the revs down so low the car literally feels like it is going to stall

 

You may improve things by trying to clean the trottlebody, that helped in the old days, but honestly, it sounds like any 1.6 litre engine I have been in. I hate running AC myself, but once the revs get up, it isn't bad. Merging into traffic takes a different technique by a long way.