it's the knock sensor, you need it, or need to foold the computer at least, for it to even engage the vtec lobes
this seems about right now to what you are saying as the gsr lower cams i believe are tuned to a lower rpm than the ls cams, so in effect you'll rev it to about 7k and stop making power around 4 or 5, and most likely you'll see better acelleration shifiting at 5 or 6k vs what you are.
put in a knock sensor or fool it.