OK! Disconected the alternator fuse, truck drove and shifted with no more problems. Also found your article at http://articles.mopar1973man.com/2nd-generation-24v-dodge-cummins/28-transmission-systems/260-torque-converter-lock-unlock-issues
I put the fuse back in and did the AC test with voltmeter and was reading anywhere from 0.0 - 0.24 Volts AC @ 1500 RPM. The new alternator must be the problem. I will take it back tomorrow and have them find a good one for me. I guess you should always have a new alternator bench tested before it leaves the store. Lesson learned. Thanks for the great advice and information. This problem has been driving me nuts for at least a week now! BTW I cleared the p500 code and it hasnt come back yet, so maybe it was just tire spin or something like that.
I will let you know the end result when I get the new alternator on the truck.
Thanks again!