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Cut off everything behind the cats(no it won't be too loud) and advance the timing a couple degrees, that won't cost you anything. The next best thing to do is add 1.7 rockers, about $200, or upgrade the cam.. also about $200 but a lot more work. Longtube headers are next but that may not be cheap unless you can fab exhaust tubing yourself.
Chips are a waste of money.
There is nothing you can do to the intake that makes any significant difference... ie: CAI, TB spacer, etc.
Same as all the other motors, pull the spout jumper(it's a little plug on the TFI module harness), loosen the distributor bolt, attach a timing light and move the distributor the amount you want.
I've already got a custom exhaust. Not sure what you mean by "free flowing" I've got standard headers, no cats and glass packs. I can't imagine it getting much freeer flowing. (or louder) You also mentioned advancing the timing how much power can you gain by this and how many degrees can I turn it up? 1-2? Also, yes I do mean torque. I'm running out of power on hills at 65-70mph and having to downshift into 4th from overdrive.
Rockers/cam as Paul suggested. Other options are an engine swap (300, 351, or 460). The 302 is not known for torque production. It's at the bottom of the list as far as truck motors go.
Gears may also help too. If you have 3.55's you can put 4.10's in. Although because it's a 4x4, it's twice as much work and twice as expensive.
upgrade your ignition system. just a hi voltage coil, 8mm plug wires, plugs, cap and rotor. you will get a more complete burn but if you are driving this vehicle long ways you may burn up plugs or wires.
Someone once told me that changing out the Mass Airflow Sensor would make a difference. Is that at all posible? Or does that need to be done with other upgrades to make it work?
I've always found the best bang for the buck to be porting heads. While you have it halfway apart throw a cam with a little more duration in there, you've got the exhaust covered already, then a free flowing intake and 650 CMF Holley. Connect the vent tubes with rubber hose and splice the top a bit. This will reduce flooding on steep angles. Give it lots of timing, as much as it'll take. I'd say 14* initial is a good starting point for max power down low, and aim for about 36* to 38* total mechanical.
To move a big truck with a small block you really gotta rev the **** out of them. That's just the nature of small blocks. They don't make any significant amount of torque down low so you gotta gear 'em short to multiply the torque you do make, and do the port work, intake and exhaust, to get 'em to make power up high.
Best option though as others have stated is to move up to a larger engine. My latest truck will be getting a 460 eventually. Now with larger tires the 351W just doesn't cut it. 5400 lbs is a lot of weight to move.
I'd say go for a 351. the 302. in my f150 doesn't even move that thing all that great and they never were much of a motor anyway so it will probably pay off in the long run too.