When I'm just coasting (btwn 40-60) along and just lightly press the gas, the rpms will jump up and then settle about 200-500 rpm lower into gear. (I've done it with O/D on and off)

I'm not feeling any jump.

It's like this:

coasting at 1500 rpm

gas - up to 2200

settles in a second down to 1800 rpm

Is this normal?

(4.6 V8 auto)

thanks!

 

Yes, it's normal.

What you are seeing is the torque converter clutch locking. When you are at closed throttle the clutch is unlocked. When you open the throttle there is a delay before it relocks. The delay in the relock is why you see the RPM rise. If it didn't delay there would be a big clunk when you open the throttle.

Mark