I checked it with the engine running. I did not shift through the gears. Either way, it is the correct level and I am still having the issue.
I did some more test driving and discovered that it does it in neutral/ park as well. The engine hesitates around 2-3k and stays there when I rev it. Or hiccups a bit and then goes to 4k, and then will jump down to 1500k... etc. So it is looking now like this is an engine issue.
Also, I am receiving a code P0137 (sensor 2 fault). This may be because I did not tighten the nuts correctly on the pre cat. I just gauged them by hand. I should have used the torque wrench... It could also be the cat is clogged as well. Which would explain a lot of this. I am going to remove the sensor 1 and see if that makes a difference. That should ween out the cat. I will then drop the trans pan to check for metal shavings. The trans does seem to shift fine when driving on flat ground. Though it could be Im just not reving it enough to cause the issue when driving flat or on a decline.