Engine Wheels pulling in neutral...

Wheels pulling in neutral...

2003 Corolla CE 5-speed. I had my car on jack stands today with both front wheels off the ground - was un-doing my TB coolant bypass. Anyhow, I started the engine and noticed both front wheels were turning. I thought I had it in gear (manual tranny) - and checked and it was in neutral. I hit the brakes, stopped the wheels, let off the brakes and the wheels started turning again. WTF?? I stopped one of the wheels by hand and then let it go and it started turning again. I pressed the clutch, they stopped turning, I released the clutch and they started turning again. Once the engine warmed up and the idle speed dropped, the wheels stopped turning, but if I revved the engine, they would start turning again, althought not as fast as when the engine was cold.

My question:

WHY? Is something wrong with my transmission??

Late,
Trav