My 99 Tahoe also has a 2002 8.1 in it here in Texas. Gets roughly the same MPG as the 350 I pulled out and alot more power.
This was the 6.0L G-van swap post I made. Only thing we have changed is rebuilt the rear end with a new set of 2.73 gears and a locking differential. It runs down the road at 1,600 rpm @ 70 mph and gets 21 mpg. When you want to pass now, you lay into the throttle it drops to 2nd gear, revs up to 4,000 and is up to 100 in a scary little amount of time.
http://www.gearhead-efi.com/Fuel-Inj...d-another-swap
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