Looking up the codes a p0500 is vehicle speed sensor, the p0720 is for that circuit. It makes sense you got that code when you unplugged the sensor.
However, in reading up on p0500, it talked about an "almost 0 km/h signal" which I had never heard of. I googled that, and came up with one post about a Yukon at this link:
http://www.justanswer.com/gm/7up7z-gm-2 ... -when.html
The post says it is ok not to have a 0 mph reading. That kind of implies your reading may be ok. I think there are some preconditions in the manual that have to be met for the IAVL procedure to work. See if you can find those in the manual, and make sure you are ok on those. One thing I think you have to do is make sure your Drive Cycle and Emissions Readiness Monitors all show ready.
Also, did you do the throttle position sensor adjustment after you put a new one in? There is a procedure for that in the manual.
Three Pathfinders - that may qualify you as an addict!