Car now in dealers hand. Diagnosis is (of course this what computer says) Bad valve body ($2.), bad solenoid body ($420), bad torque converter ($740). So roughly $1000 for parts and $3000 labor. Waiting extended warranty approval for repairs. I will be hitting Ford hard on Monday or Tuesday.
Dealer says none of the "bad" parts were replaced when tranny repaired before, therefore Ford will NOT warranty.
As for engine surging, transmission tech believes its related to solenoid being bad. We will see.