If it's fine in P and N it's probably not engine related (however, this only tests the engine with no load).
Test in a safe area. Try pulling the ABS/Trac relay. ABS/Trac lights should come on and become disabled. Does it still surge in those rpm ranges?
If not, I wonder if it's the torque converter clutch. There is an electrical connector to the driver side of the NSS. Disconnect it to go into limp mode. Shift into L (for 1st gear) and see if the problem is still there. Don't shift into other forward gears because it will be using high gear and lug the engine.
How's the condition and level of the ATF? When was it last drained/refilled?
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Originally Posted by 97camryxlev6
So far no engine light.
The problem occurs in D, L, and 2. In P and N there are no issues. I've tried with and without Overdrive and traction control.
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