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Boy if that don't sound like a plugged up cat converter. That would be the first thing I would have checked out. A muffler shop could tell you if its plugged or not. What is baffling is the CHECK ENGINE light is not coming on, but then again the cat converter may be by passed.
Good troubleshooting! It was the cat converter- actually all three are plugged according to the exhaust shop. To find it I took the second O2 sensor in line out and it purred like a kitten. Of course reving it past 4K it started to bog down again, but that is to be expected. With the O2 sensor out the CEL finally came on! Thanks for your alls help. I will check the site from time to time to try to help someone else out. I'm actually not a bad mechanic, but this one had me baffled.
Someone else on this thread also mentioned the cat converter. Yup, the engine couldn't breath, it was choking on its own exhaust. Yes, the CEL came on not because of the plugged cat converter, but because it detected the O2 sensor not being there, lol. Not 100% positive, but I would bet that O2 sensor is bad also, because like Bill said, the O2 sensor should of picked up the plugged converter and light up you CEL. At least you found the problem, that's the main thing...