Dang, sounds like you found your problem, sludge. That's never good. Sounds like you'll be doing a engine rebuild, or at least a header rebuild. I know the valve seals in these trucks are known to go bad if you don't take care of the oil on a regular basis.
When you take the valve cover off, it soundn't drain any oil, it sounds like the oil ports are clogged with sludge, hence, needing a engine rebuild, or a very good cleaning.
When you take the valve cover off, it soundn't drain any oil, it sounds like the oil ports are clogged with sludge, hence, needing a engine rebuild, or a very good cleaning.