for starters Id forgoten about the sports mode thing.... yep thats a good idea especially for freeway running (up to say 85-90kph) and on slight "hills" sports mode basically puts the box into "power to the ground NOW" mode. so it will hold the lower gears for longer but still change up to the tall gears when very low engine torque numbers are required. It will also change down more aggressively.
I still recommend locking it back to 3rd for big climbs or if your going to be toodling round the burbs as it will stop the box from going up into fourth on the over run which will increase your ability to engine brake which saves on normal brakes and IMHO is a much better way to be driving.
for grumpy.
I dont know who told you that the lockup for the gears was in the box its all done in the torque converter. ITs basically a clutch in the TC that when the box decides that engine speed is near enough to gearbox speed input speed that the 2 primary rotating parts of the TC can be locked together because the TC is basically just wasting energy.

