taking off 737

Ok here's what i understand are the steps for takingoff on the 737: 
1)lights on
2)I dial in the Autopilot: 250kts 18000 alt, 2500 fpm
3) 5 deg flaps
4)F/D on and A/T arm
When i get takeoff clearence i increaese throttle to 90%....
at 140knts pullup..... as soon as i get a positive rate of climb, gear up, then engage the autopilot on and click on the "alt".
BUT!!!!..... when i click the "IAS" on; N1 drops automatically to 60% sometime even less than that!!! and ofcourse there is nothing i can do about it!. IT dont seem normal (gets kinda scary too) ?or is it?
What am i doing wrong?
I also turn the IAS well below 250, and once engaged the autopilot if i let go the stick the nose drops!!!!
Please help me

1)lights on
2)I dial in the Autopilot: 250kts 18000 alt, 2500 fpm
3) 5 deg flaps
4)F/D on and A/T arm
When i get takeoff clearence i increaese throttle to 90%....
at 140knts pullup..... as soon as i get a positive rate of climb, gear up, then engage the autopilot on and click on the "alt".
BUT!!!!..... when i click the "IAS" on; N1 drops automatically to 60% sometime even less than that!!! and ofcourse there is nothing i can do about it!. IT dont seem normal (gets kinda scary too) ?or is it?
What am i doing wrong?

I also turn the IAS well below 250, and once engaged the autopilot if i let go the stick the nose drops!!!!

Please help me