I messed with it a bit this afternoon cutting injectors off and messing with stuff attempting a further diagnoses. At idle, all 8 cylinders are contributing equal power. At 2,000+ rpm all 8 cylinders are contributing equal power. At 1,750 rpm, cylinder 3 is dead, 4 and 7 are weak. I repeated the same test multiple times and same results every time. I actually advanced and retarded the ignition timing at 1,750 rpm to alter the rotor phasing to see if it was the timing advance at 1,750 rpm causing the issue. Stayed the same. If I play with the throttle between idle and 4,000 rpm it shows a large misfire count climbing on #3 and some misfiring on #4 and #7. About a year ago I fought a #4 misfire that acted similar. Did a Cap, Rotor, Plugs, Wires and lifter adjustment. At 1,750 rpm it sounds like it nearly has collapsed lifters in it. The valvetrain was absolutely sounding horrible. Honestly now feel like it is probably all lifter related. It has crossed my mind to go to the shop, grab the cam, lifters, intake and 24x stuff and shot gun it all into place. I want to get the longer pushrods into it and verify the intake is not leaking before tearing the top end apart but it is looking like that is going to be the ultimate solution. I want to test the longer pushrods and the greater lifter preload because I have 2 or 3 other sets of new GM LS7 lifters that I really want to be able to use in future builds. There are guys running over 400# open spring pressure on some builds with them, so I do not understand why mine seem to hate the 350# spring pressure.
I took it down the road a few miles outside of town, turned around, layed into from a stop, WOT all the way to 80 mph and not a single misfire count. Exactly opposite of what I would expect from any kind of ignition system failure too.