Thanks Steve.
I don't believe there is any vacuum leak and I think the rpm hang(comes down a bit slower) between gear has to do to the fact that I don't have IAC and my throttle is NEVER fully close when my foot is off the pedal. Due to the fact that I can't control how much air still get pull into the engine, I think the fuel cut method is the only way around this.
I'll give it a try over the weekend and report back.