Tim I used a vacuum gauge to adjust the timing, it was a idling about 15 now its at 19. My machinist set the valves at reassembly, which I am assuming is going to be off, since the motor was cold.
I will adjust the valves at idle, after the motor is completely warmed up, and the oil temp is stabilized. I will be setting the intake to .010 and the exhaust to .020. Now that I think about it, I don't recall ever discussing the fact that my truck is a 1.5ton with my machinist, so again I am assuming the adjustment is off.
Carl thanks for the tip, I tried it this morning and when the 'noise' happens the paper would momentarily be sucked against the tail pipe.
Once I adjust the valves I will post what I found.
Thanks again everyone!
Curt