perfectly normal, oh thats right I also installed a 180 degree thermostat, because the 200 degree stock one was stuck open.

*edit*
You guys don't think that it could be transmission related do you? I say this because it shifts so smoothly. with dex III with about 8 ounces of marvel and a half quart of lucas. It didn't need the lucas I threw it in there as a preventative maintenance. From what I have seen with the tcc solenoid, and shot converters is the rpm jumps a lot(500-1000 rpm) and once it catches it its all set threw everything above 50mph. Mine does that surge from 30mph-55mph sometimes, and i get this on the free way too.

 

Looks like it was solenoid/valve related, I added some trans-x to my transmission and good results. My shifts became quicker and smoother, and after spirited driving over the past 2 days, I haven't been able to get it to surge at any speed. I'm going to go out on a limb and say I hit it right on the head, but I'll give another update in 2 weeks.