The 700R4 auto in my 89 Camaro will act like it shifts into neutral sometimes. It has done this on some mornings and sometimes when I get on the throttle hard suddenly. It is like shifting into neutral all of the sudden from drive. All I have to do it let off the throttle for a second and the trans goes back to normal. Otherwise during normal driving the trans shifts fine.

A friend of my dad's said that it could be the torque converter.

anyone with ideas?

its probally just time for a rebuild. If your torque converter came apart, your going to want to get a rebuild anyway, as there will probally be metal all inside your tranny.

3-4 clutch pack. very, very common. rebuild time.

Does it do this in all gears?

well if your tranny is worn out...then all your clutchpacks will wear out. if the band or packs wear out, its time for a rebuild on the whole system...dont worry tho, parts are cheap and come in re-build kits.