Idle Surge on Older Briggs and Stratton 8 HP Motor

In my opinion the dealer doesn't know what he is talking about. Your description of the problem indicates a fuel problem. Clean the carb real good and as I said before install a new float needle. Part number 394681 if you have a gravity feel system or part number 394683 if you have a fuel pump. Also clean the fuel lines and make sure there is nothing in the tank, which might be plugging the fuel outlet. This manual might also help out.

http://dl.dropbox.com/u/12502267/B&S Service Manuals/01_270962SingleCylinderLHead.pdf
 
Hope your dealer isn't just trying to $ELL you a coil. Even if you replaced the coil and it did the same thing, you're stuck with the coil. Coils aren't cheap! Go through that fuel system and replace the parts Rivets told you about and you should be fine with it. Sounds like some fuel-starvation issue to me.
 
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