I took a video of my issue to make it a bit easier to explain.

http://youtu.be/JNOP8ICXJWg

I understand that there was a service bulletin for the VTC actuator which they say causes the grinding sound that you hear in the video. However, if you pay attention to my RPM, there is also a bit of a "lag" so to speak and then the RPM jump up. I'm not sure if these issues are related.

Any thoughts?

Also, what happens if the VTC actuator dies completely?