Thanks for all the advice guys and gals, I finally solved it!
ISV was faulty. It should have been SHUT when no power to it, but as you can see:
Both the original (top) and BRAND NEW CHEAP COPY off ebay (bottom) have daylight showing. The bottom one even is misaligned! Guess I'll be sending that back and getting my £40 back then!
How I solved it: (not elegant and could be made prettier if I had some "street" elbows and a 22mm valve)
It now idles at approx 1200 rpm which is still too high, but I think that is caused by the large butterfly sticking open slightly.
Cheers,
Steve