BOBfromNJ-
Your vin number according to TSB TC002-07 does not appear to be one of the problematic 6-speed automatics affected but I honestly believe what you are experiencing is indeed factual. Given the 2007 is the first model year for the 6-speed auto I suspect others like yourself which have vin numbers not documented to be 3rd to 4th gear "flare" prone will increase in numbers and population. I've only got a little more than 300 miles on my 3/07 Kentucky build date V6 LE but each time I take it out for a ride I'm especially vigilent each time it shifts from 3rd into 4th. Presently my new Camry performs flawlessly mechanically but it's not fun worrying about reliability issues each time my wife or I take it out for daily tasks. Suggest you schedule an appointment with your dealer and ride shotgun beside the tech diagnosing the flare. Be sure and request all paperwork each time you visit as you want to leave a good paper trail documenting everything should things go from annoying to catastophic.
In mid May I'll finally be taking my new Camry on it's first multi-state business trip and I'll be sure and keep everyone informed on anything abnormal. Right now I am still in awe how I can travel almost 70-75mph with only 2000-2200 rpms according to the Camry tach. I purposely will not post mpg figures until I've accumulated a few thousand miles on my odometer so everyone please stay tuned.
Did I mention I am also in awe of the pep of the Camry V6?...My old 1999 Ford Crown Victoria with performaance package and advertised 220hp seems about equal in pep but then the Crown Vic was more spacious and definitely quieterblocking out all road noise. I can definitely hear the Camry V6 engine and road noise unlike the Ford but am not overly concerned with minor nits so long as it stays on the road more often than the repair shop. Keep us all posted on your visits to the dealer and especially your findings!