thought i would give an update on this thread as well for those interested... well the sludge came back with a vengeance! also the truck had been showing quite a bit of blow-by as well as a slight knock... so after pulling a valve cover again and finding lots of sludge it was time to tear it down...
after pulling heads, all of the cylinder walls were washed clean/ almost no hash marks (this would account for the blow-by)... and #2 piston is 15 thou lower than the rest.. uhh ooh.. pulled the pan and the piston was just touching the crank (theirs the knock)...
i havent found the coolant lose issue yet but regardless the motor has been pulled and a new short block is going in..
i think all of these issues point to emission related s#%t, my theory is regen washed down the cylinders and the bent rod is from a blown egr cooler that happened the first week i got the truck lol, must have filled the cylinder... moral of the story... get rid of it all ASAP!!! and save your self the hassle/ cost down the road!