As for any transmission problems, always start with the basics.
Pull the transmission dipstick and look at the fluid. If it's black and smells burned you don't need to go any further, your transmission needs to come out for overhaul.
Put the car on a level surface, get it up to normal operating temperature (fans cycling) and check the fluid level.
Electronic transmission torque convertors can be a real bugger to diagnose because they have so many inputs.
For it to lock up the following have to be met (There are probably more):
Engine at operating temperature.
In 3rd gear.
Speed over 35MPH (or thereabouts)
MAP or MAF showing a steady cruising speed.
TPS steady and withing a set (programmed) range.
No knock sensor signal.
Brake pedal off.
So a fault in any of those sensors or switches can cause the convertor to lock and unlock at the most awkward moments.
The good news, any transmission problems will store an error code, just have to get it scanned.
http://chevythunder.com/199295_lt1_trouble_codes.htm