You should like at this thread
http://www.automotiveforums.com/vbul...d.php?t=350633
It talks about the correct procedure to time your engine. Unfortunately, you will need a scan tool to do it.
For the surging, timing could be a cause. A dirty fuel filter (or even the pump going out) could also be another cause. You need to find out what your fuel pressure is. On your engine the pressure should be around 60 PSI.
//2000CAYukon