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From your description I'm guessing that you have an automatic (because you say "in gear").Car idles around 500 rpms when at a traffic light and in gear....
I'm further guessing that if you are stopped and the car is put in Neutral that none of these problems happen?
If so, then I think the idle is set too low, and/or the switch/mechanism to kick up the idle when the AC compressor is working is not functioning. 500 rpm seems kind of low...