As a follow up: I did read that the normal operation of the transmission is to not attempt to lock the torque converter until after several miles of sustained highway speeds, so that makes sense with what I am experiencing. The fault code is triggered after the converter is supposed to have...
I have a 2005 Liberty with the 42RLE and I am having the same or a very similar problem as the saga in the following thread from a few years ago:
http://www.jeepkj.com/forum/f196/p0740-******-code-59369/
Here's my story:
Check Engine / Malfunction Indicator Light comes on. Code is P0700...
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