This is exactly like what I've got going on right now too, and have been fighting for awhile. I don't notice it so much with the cruise on, and it seems more pronounced with with a load in tow. I changed out the Apps (Timbo) and still have it, Unless it needs a re-cal again. ???
I've read suggestions about shorting a couple wires to eliminate the shift hunt and that wasn't it. Wrapped the alternator wire with foil, I think that was supposed to shield surrounding wires from a noisy alternator and causing transmission lock/unlock(I think), still no help.
I might have to try the IAT or MAP sensors idea. Beginning to wonder if this isn't a outside air temp related issue. KevHype, Does your dad's do this during the heat of the summer? I'm kinda thinking i didn't have so much of an issue this summer and thinking the cooler air brought this on again. ???
Keep those ideas coming!