I started to have a rough idle so I took out the ETM and noticed it wasn't closed all the way its stuck open a little bit, is this normal? I went ahead and cleaned it and put it back together.

I took it around the block a few times and when it downshifts it shoots up a few hundred RPM's it didn't do this before. I came to a stop and it was resting at 1k RPM's and put it in park and it shot up to 2k then went back to 1k. Any idea why this is happening?

I have a 2002 S60 non turbo

I included a picture of the ETM

 

Have not run into this problem on my 02 S60 Non Turbo. I have learned that this is a very common problem in 99-02 Volvo's. If you find that you need to replace your ETM I have heard multiple good reviews about a company called Xemodex sells pre-programmed replacement ETM's.

Actually looking at the site it looks like sell a repair kit as well. If you are handy with these kind of things.