Thanks for the information regarding the 366 vs the 454. I'll keep the 366 in there for now. Ultimately I wouldn't mind putting a Duramax or a Cummins in it some day, but I need to get the truck back on the road. I have some jobs lined up and am gonna need her.
I did the water dribble today, and it seemed perhaps a little smoother, but after I had changed everything mentioned above, it has been running really well aside from the dieseling. I played around with the idle on the truck per Hotrod's suggestion. If I turn it way down to where it will barely run, then in may cough once or twice, or not at all. I decided to slowly increase the idle until I found a spot I could tolerate and left it there for now. The idle is lower now than when I began, but it still dieseles albeit not as bad anymore. Prior to doing anything, it wouldn't shut off on its own. I had to pull the choke or put it in gear to stop it. Keep in mind this is only after the truck has warmed up. When the truck is cold or hasn't been running for very long, it never would do it.
Attached is a video of my progress today. In the beginning of the video, the idle is as low as it will go without starting to die. At about 34 seconds, I shut it off and it gives a little cough. At 46 seconds I shut it off again and nothing. I start to gradually increase the idle after each shutdown from there. I left the idle where it is at the end of this video for now. At least it will shut off. My only concern about turning it back down to where it was at the beginning of the video is that it is very low and won't stay running until it warms up.
Big Blue Dieseling