I've had the same problem for a while as well. At least since I put the 33inch MTs on it. I can't remember if it did this before then. What it's doing is cycling the power to the front on and off and on and off, and you can feel it surge every cycle. I have come to expect this behavior and just try to not put my foot in it when I'm accelerating.
I think I remember something about the ABS sensors being used by the TOD. Perhaps one of those sensors is buggered up or something. I don't have an ABS light on though so it doesn't make a lot of sense. I've also heard a cause of this is improper air pressure in the tires, or not having the same pressure in all 4. I think there must be something about aggresive mud tires that makes the TOD think the rear wheels are slipping so it applies power to the front.