LexTR3 said:
"An engine diesels because it is running backwards which can lead to serious damage to the engine itself.
That can happen, but most often it is still running forwards.
With the "diesel" cycle (the way a diesel engine runs normally), the fuel/air mixture is ignited by being compressed and heated to its self-ignition point. When you turn off the ignition key, all you remove is the spark, not the fuel/air mixture (unless you have a later TR with the anti-runon solenoid). So if conditions are right for the mixture to get compressed and heated enough, the engine keeps running as a diesel. That includes any kind of "hot spot" in the combustion chamber, like a sharp edge, or spot of glowing carbon, or even a plug tip that is too hot.
It's not especially good for the engine, but isn't going to destroy it in an instant either. After all, that is the way many engines run all the time, and they frequently run for hundreds of thousands of miles between overhauls.
There are some big truck engines that have a serious problem with running backwards, though. They can be quickly destroyed, because they are running on oil from the crankcase and will overspeed if the operator doesn't take instant measures to stop them.
However, I spent most of a summer once driving a gasoline tractor 6 days a week that would frequently run backwards briefly after being shut down with the throttle open. At the end of the summer, it was still running fine, no signs of damage. (Of course it was someone else's tractor. If I'd been caught doing that to my grandfather's tractor, he'd have nailed my skin to the barn!)
At any rate, I'm with Doug on this one. Tune it so it runs the best and idles as slow as possible, then make a habit of killing it with the clutch after turning off the key if necessary. "Lumpy below 750 rpm" implies to me that your motor isn't exactly stock, so there may be no complete solution unless you want to install the equivalent of the later anti-runon solenoid (which shuts off fuel as well as spark).