Idle issue on an 89 sidekick 8v

[Freaky Beanie]

Hi all,

I've been battling idle issues for quite a while on my 89, at first I had timing issues (fixed) then, I had ISC (electric) with a failed gasket (temporary fixed by adding an O-ring to the center orifice). I would also like to point out that I also repaired the ICU thanks to you (Fixkick) Now I can get the truck to idle fairly well 850 to 900 ish. The problem is that, it's with the idle screw all the way out (I'm assuming that, if I wouldn't have any issues, the idle screw set that way should stall the engine). As an experiment I closed the IAC (under the 3 bolts) with putty. This got my engine to not start without the gas pedal depressed. I was then able to get the engine to idle properly by setting the idle screw. I don't want to leave it like this as I don't think it's a fix and more of a diagnostic. I've ran the engine to temp and the plunger/valve seems to be pulled outwards (in the direction of the front of the truck). I've tested for vacuum leaks by pinching the hoses (idle didn't budge) and I've plugged the brake booster before the metal line (just for testing).
Now to my main question. Once the engine is to operating temperature, should the IAC valve be completely sealed? Does adding putty represent a proper IAC valve operation at operating temperature? And if I have a bad IAC what's my solution (as it's part if the TB).

Thanks