I believe the surging has been eliminated, seems there was a suction leak from that corrosion on the filter gasket sealing area. Have not experienced actual surging since correcting that.
Went out today with the wife. Fuel tank was full, cruised for almost 2 hours, water was mostly snotty at first but found a couple of spots to open it up a bit. No surging at all, and was able to reach the 4400-4600 range in RPM, could have gone higher I think but I kept it below 4800. No cut-out, speed felt really good, speedo showed above 45 towards 47 I guess. That still shows higher slippage, but will wait until I can get a GPS clocking to assess if this prop has a problem there. The speedo is sleepy, and does not even move until all of a sudden it shows 20.
Anyways, had almost 2 hours of perfect cruising at different speeds. When the Admiral went up front I found the perfect speed at about 2800 rpm where the ride is good, boat is on plane, you can hear the stereo real well at half to 3/4 volume, and happily post away on FB with your phone :joyous:
Thanks everybody...