Thanks for the response guys. One of the mechanics told me that it sounds a lot like TSB: ITB11-018. The more i read on this, the more I think this is it since it basically describes what i feel. I'm considering another dealer and just telling them to do it without another service checkup. ArmedAviator, to answer your questions.
1. In park it idles fine, even in gear it idles fine.
2. Always hesitates at take off or very low rpms (speeds while driving in a parking lot or pulling out of a driveway). At high speeds if you floor it, it will hesitate before the power and rpms shoot up.
3. At cruising speeds, it you tap the gas to speed up a bit, you feel a bit of a hesitation/jolt. Its not a huge jolt feeling, you probably wont feel it if you're sitting on the passenger seat.
4. Revving does not cause any unusual noises or misfire.
The dealer stated the the bad sprocket is causing the misfire which feels like a hesitation to me but what has me questioning that is that I still don't have any codes or check engine light on.
ArmedAviator wrote:If the cam sprocket is broke, it'd sound awful and potentially bind/not run. Catostrophic engine damage would be suspect.
Questions for the OP:
1. Does our engine idle as it always has?
2. Does your engine hesitate always when accelerating or just when cold/warm?
3. Does your engine hesitate/misfire when at cruising speed?
4. If revving your engine in Park/Neutral, any unusual noises or misfire/hesitation?