The cap was changed this year sometime during August and the engine since then has been operated for about 4 hours.
But did the surging seem to happen before or after the new cap?
If you believe it's somewhat better then you may be headed in the right direction with new plugs and rotor plus a proper cap.
^^ Again with knowing that new info, has the distributor shaft assembly been moved (turned) at all before or even after the surging was noticed? Didn't you ask about setting "engine timing" one time before silver_power?
Though sometimes the contact terminal materials of distributor caps can change (mostly between brass and aluminum), these caps have a tendency to cross arc internally causing misfire type issues. It supposed to be less of an issue with the brass design though. But it's still imperative to have this style distributor assembly phased in correctly or you could still have an internal arc issue going on.
Service dealers now have a few ways to properly phase in the distributor settings. One by watching the CAM angle via live data on later model scan tools as you adjust. Not sure if your scan tool offers that option Silver_power?
http://forum.chaparralboats.com/index.php?/topic/18294-flat-distributer-caps/
The next way is would be by following the steps mentioned in posts 15 (the quote by muc), 16 and the link in 17 by AD.... if you can get the link to work...I can't...
Anyone here able to post the images of page 15 - 20??? http://forums.iboats.com/forum/engi...i-wrong-ecm-on-engine?p=10221970#post10221970
Though it's from Volvo Penta, here is the original way to phase in this distributor design as it helps explain better than most other info from Mercruiser,
http://forums.iboats.com/filedata/fetch?id=7001823
If the TPS voltage or percentage was fluctuating just slightly due to say a failing, loose, corroded sensor/wire, etc., then chances are the ECM may not necessarily set a fault code due to the movement might not be falling out a set voltage range which should be about .5 to 5.0 volts per se. If the volts went to say 0- or 6.0+ volts then it's supposed to set a fault.
If the ECM "thought" the TPS was moving say between 2 or 4 % (or about 1 volt) then yes the engine may want to try and change all the other ECM mappings making the engine surge a bit even though the throttle handle really isn't moving allowing more air into the engine.
But using the live data on the scan tool or using a multimeter, you should be able to see if the voltage is actually changing or not.