Ok, there's been a lot of talk on here lately about people wanting to level their towing mirrors. I'm going to try to explain how I did mine. If anyone has any questions, feel free to PM me and I'll see if I can explain myself a little better. This is really a pretty easy project, with minimal tools used. You will need a small flathead screwdriver, 4mm allen wrench, and some small washers. This is what you start with:
Use your flathead screwdriver to remove the outer cover from the mirror hinge. This part is kinda tricky, the cover can be pretty stubborn.
Next, use the allen wrench to remove the top bolts. Loosen the bottom bolts, but do not remove them. About a 1/4 of the way out is plenty on the bottom bolts. This will let the mirror hang down some, and you will be able to see where you will insert the washers in the top bolts.
This shows where you want to put the washers in. They will be inserted between the main body and the outer bracket on both top bolts, where the mirror pivots.
The amount of washers is up to you, just judge how far they move the mirror down until you are satisfied. I used 1/4inch machine washers to gain the drop that I wanted, 2 washers for each top bolt. Adjust the number of washers to gain the amount of drop you want.
Once you get them leveled the way you want, you will have to shave down the lip at the top edge of the outer cover. A small grinding stone on a die grinder or a dremel or a file can be used to do this. Shave the lip off the inside of the cover until it is mostly flush, or until it clears the pivot of the mirror. It might take several test-fits to get the amount of clearance you need.
Once you have the mirrors leveled out like you want, tighten all the bolts, and re-install the outer cover. You should end up with something that looks like this:
Once this is done, it does leave some room for up-and-down movement of the mirror. In my experience, I haven't seen this cause any problems. You still have full movement of the mirror forward and backward, and I haven't had any problems since I did mine over a year ago.
I hope I have explained everything well enough for everyone to follow. Once again, if anyone has questions, feel free to PM me.
UPDATE: GM has discontinued the cover for the classic body mirrors. It has been said that the cover from the 07.5+ trucks will work, but I have not verified this myself, and it sounds like there is a little work to make them fit properly. If needed, these are the part numbers of the NBS mirror covers
1 COVER Outside Rear View Manual Rear View Mirror - p/n 25861019
1 COVER Outside Rear View Manual Rear View Mirror - p/n 25861018
Numbers should be the same for manual/power mirrors

Use your flathead screwdriver to remove the outer cover from the mirror hinge. This part is kinda tricky, the cover can be pretty stubborn.

Next, use the allen wrench to remove the top bolts. Loosen the bottom bolts, but do not remove them. About a 1/4 of the way out is plenty on the bottom bolts. This will let the mirror hang down some, and you will be able to see where you will insert the washers in the top bolts.

This shows where you want to put the washers in. They will be inserted between the main body and the outer bracket on both top bolts, where the mirror pivots.

The amount of washers is up to you, just judge how far they move the mirror down until you are satisfied. I used 1/4inch machine washers to gain the drop that I wanted, 2 washers for each top bolt. Adjust the number of washers to gain the amount of drop you want.
Once you get them leveled the way you want, you will have to shave down the lip at the top edge of the outer cover. A small grinding stone on a die grinder or a dremel or a file can be used to do this. Shave the lip off the inside of the cover until it is mostly flush, or until it clears the pivot of the mirror. It might take several test-fits to get the amount of clearance you need.

Once you have the mirrors leveled out like you want, tighten all the bolts, and re-install the outer cover. You should end up with something that looks like this:

Once this is done, it does leave some room for up-and-down movement of the mirror. In my experience, I haven't seen this cause any problems. You still have full movement of the mirror forward and backward, and I haven't had any problems since I did mine over a year ago.
I hope I have explained everything well enough for everyone to follow. Once again, if anyone has questions, feel free to PM me.
UPDATE: GM has discontinued the cover for the classic body mirrors. It has been said that the cover from the 07.5+ trucks will work, but I have not verified this myself, and it sounds like there is a little work to make them fit properly. If needed, these are the part numbers of the NBS mirror covers
1 COVER Outside Rear View Manual Rear View Mirror - p/n 25861019
1 COVER Outside Rear View Manual Rear View Mirror - p/n 25861018
Numbers should be the same for manual/power mirrors