kbuskill
***CAUTION*** I do my own stunts!
Gentlemen: I believe the problem has been found and solved, and the Good Lord has had great mercy on me that the truck didn't detonate before I fixed it.
The timing chain tensioner was completely obliterated, and the cam was able to flop all over the place. It is amazing how easy these LS family engines are to work on, it took no time at all to tear down and put a new timing chain on. Also, the buying the LS crank pully removal tool was well worth the money, as was the tool that locks the crank at the starter.
As per the generous information of Rdezs, I put in these new parts:
>Melling 10296 Oil Pump
>Cloyes 9-4205 Timing Chain
>Cloyes 9-5490 Timing Chain Tensioner
>AC Delco 12682000 Camshaft Solenoid
>AC Delco Camshaft Position Sensor 213-2836
>Ac Delco 12653140 Camshaft Phaser Magnet
The truck runs extremely smooth now, none of the surging at all or powerloss. It goes through all rpm ragnes smoothly and finally feels like it has more power than my 2004, so it looks like the problem had everything to do with the timing chain and nothing really to do with the DOD/AFM system after all.
Thanks much for the help everyone, I am absolutely thrilled to have this back together and so is my wife.
That is good, hopefully you won't have any more issues.
I would still very seriously consider replacing the torque converter or at very least having the PWM turned off to extend the life of the transmission.
The stock 6L80E converter seems to be the weak point and when they grenade they pump trash through the rest of the transmission which usually will require a rebuild. A good billet converter and a tune will make the transmission last a long time.