I have a 5.3 on engine stand in my garage and it will start and run pretty good until it warms up. It seems to be about before it enters closed loop so i don't think it's O2's. It will all of a sudden drop about 100 rpm, try to catch up and jump about 200 then repeat like that for 10 seconds or so in an oscillating pattern. Then it will eventually shut itself off after the last gasp.