The rumors you've heard about the converted 5.7 litre gas engine to diesel are true. But don't let that confuse you with the 6.2 litre diesel engine. it was designed specifically for the GM light truck market starting in 1982 and is completely different from the 5.7 conversion.
The 6.2 diesel is a naturally aspirated engine- meaning it was not designed for a turbo charger, or ram air intake. So it doesn't develope the power that today's diesels do. But if it was taken care of, it's a good engine, and you shouldn't discount it's reliability. I think they (Detroit Diesel) manufactured the 6.2 through 1993 when the 6.5 took it's place. The 6.5 was made to accept a turbo and got more computer friendly (ECM), so it was a well accepted improvement for GM diesels.