[Aberdare]

Vic:
This is could be more than a simple ground issue. With Key On Engine Off (KOEO), the VSS should be a flat line on your oscilloscope. With Key On Engine Running (KOER), the VSS should still be flat line until put into gear and speeding up should begin to show a frequency change.

Checking the grounds is certainly not going to hurt... The Flashing Check Engine Lamp while the engine is running is a good indicator of a bad/missing ground somewhere. Are you using a NEW TCM? GM TCM's require programing/software download to function correctly, as they are BLANK (no software) out of the box. You may want to consult a local professional who deals in this sort of thing who can do a software load for your TCM.

Just pointing you in a new direction... hope it helps.
Abe