Glad you made some progress.
That nipple looks like it is for the choke as tomw mentioned and that could be part of your problem with high idle not kicking down. That may help if you attached a vacuum line to it so see if it functions better (properly). Just remember that the choke is really only needed for cold starts and if blipping the gas peddle doesn't drop the idle it may be something else...
The ICM (Idle Control Module) would be that mess of wires on the passenger side fender and one of those wires is actually for the choke (white with black stripe).
I really don't remember how that carb works and never spent much time trying to fix it because one mechanic spent two hours looking at it only to tell me she didn't know how to fix the problem with my emissions but the carb wasn't the problem...but many on here have said the same thing...it is better if you just replace it with something newer and easier to work with.
I replaced mine with the Motorcraft 5200 and all my emission and idle problems disappeared. Truck ran fantastic for about two years before I blew the engine that was already high mileage when I got the truck.
Anyway...I have gone on for hours on this many times over the years but happy to say it again...lol
Not saying the carb is not fixable or won't work...just with all the emission stuff they added to the engine it was not an easy thing for someone like me to tackle for the first time. Replacing the carb and intake gave me about 8 years of good running with a replacement engine under it...
I found this information online...as you can see the part was sold...but there are other images if you want to study it more...and if you can find a book on rebuilding it would help you understand it better and maybe you could work through it when you need to fix something...
http://www.ebay.com/itm/222101899111