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2nd Gen Ram Tech1994-2001 Rams: This section is for TECHNICAL discussions only, that involve the 1994 through 2001 Rams. For any non-tech discussions, please direct your attention to the "General discussion/NON-tech" sub sections.
Valve seals are REALLY bad then, and probably cracks around the valve seats. Unfortunately, all too common on these engines, especially with high mileage. At 260K miles, it is getting on toward time for a rebuild.....
Got the low down from the previous owner, my bro in law, he said the bouncing started one day after he changed the plugs, and it wouldnt go over 55, It sat for 4 months then i bought it for 300 bucks, I looked around and noticed right off the bat that he crossed two wires, rectified that and it ran fine except for the bouncing that is from a random misfire, the only thing I haven't changed since then was the ignition coil or the pickup coil
I would replace the PCV at this point as well, won't cure it but should help any vacuum operated/controlled systems. Put in a new coil. But a leak down with compression will really tell what kind of shape that motor is in. Also is there oil in the plenum again? This happened to me where I did the plenum and had oil in the intake immediately after, and it was the PCV. With that many miles if there was any pre-ignition from those wires being crossed it could have cracked something, was one of the crossed wires cylinder 8?