Ya. I am facing reality that it is on its way out. I took the cap off to get you guys a pic tonight. A week ago I tried it and the cap would sit on the oil fill opening without moving but had some smoke coming out. Now the cap is dancing on the opening when I unscrew it. It is definitely getting worse. There is a big cloud of smoke around my truck when it is idling. Kind of bummed out as I just put nearly 10K in this truck and now it is ready to die. Thanks for the input guys and I will keep you posted on the outcome.
That sucks, but, not time to give up yet:
I did a search on 05's and found 5.9's with approx. 100,000 miles on them and seen some for $3000 (minus turbo which should work perfect for you) and complete engines up to about $5500.
Expect a 300 to 500 shipping charge, or zero if there is one close to you. Very worth it to pay the shipping and get a low-mile engine than to take a chance on something closer with higher miles that may have issues as well.
At any rate, most wreckers give a 3 month warranty and about 10,000 miles. If you go this route, make your life easy and ONLY get an '05.
I would just rule out a full rebuild all-together unless you get it direct from Cummins. Ex$pensive I'm sure and you already have enough into it. Time to get clever with the penny.
My example: I went with a 105,000 mile 46RE for $800 plus $113 shipping and now have 45,000 miles on it without issue. The remove/replace re-build route was $3300.00 from a reputable shop and no better warranty than my auto-wrecker score.
It was a tough decision, and it's the first time I've done it, but sure worked for me.