The tow weight your manual gives is the maximum loaded weight of the trailer. It has nothing to do with the truck's GVWR (see the
RV Forum Glossary for all these terms). It does, however, have something to do with the trailer's GVWR, which is the trailer's own maximum loaded weight.
So according to the owner manual, you can pull a trailer that actually weighs 7700 lbs. However, that 7700# assumes the truck is empty except for a 154 lbs driver and a tank of fuel. No wife. No dog. No cooler in the back seat. And no 5W hitch either. All of those things add weight to the truck, and
subtracts weight from what the truck can tow. As a rule of thumb, we suggest discounting the max tow capacity by about
10% to allow for carrying extra things, and maybe a bit of safety margin too. That means you should be looking at trailers whose actual loaded weight will be about
6900 lbs (7700 - 770 = 6930). Since you don't know what the actual loaded weight of the trailer will be until you buy it and load it full of gear, use the
trailer GVWR as an estimate. You may come in a little under that number in actual weight, but it never hurts to be conservative.
A 5W will have about
20% of its actual loaded weight on the hitch pin (not 10% - that's for travel trailers). Your truck has to be able to carry that much weight, just like it was a load of rocks dumped into the back. Make sure you have enough truck
payload to handle
20% of 6900# (
1380 lbs). Once again, remember that your truck is also carrying every bit of weight you stuff inside it, so you cannot use all the payload rating to carry the pin weight of the trailer.
I cross-checked with the 2006 Trailer Life Tow guide and it agrees that 700 lbs is the max tow capacity for that truck.
Hope this helps clear things up. Feel free to ask for further explanations.