Engine cutting out/Failsafe Prog

[e30mpower]

I'm almost ready to get rid of it and pick up a Benz....

Last week, I was turning into a parking space at work and my engine cut out, no warning, no anything... but then it started right up like normal again.

Today, I bumped the trans from drive to neutral by accident while reaching for the glovebox. Went and did some errands, then came up a hill kinda fast and it knocked down into Trans. Failsafe Program. Cut it off, started back up, still in Failsafe. I had all five gears and reverse, but the downshifts were really rough.

Failsafe finally disappeared after letting it sit for a few hours and it started behaving itself. Then tonight, I was on my way home and was pulling up to a stoplight, and the engine cut off again. No warning, no sputtering, no anything. I just looked down and I had the SES light and RPMs at 0. It started right back up, I pulled into Jack in the Box, stopped, pulled up to the window, and it cut off again.

It only has 72k on it. I put only 93 octane in it. What should I check first? I'm not terribly concerned about limp-home mode, since that is something I expected to happen with this car (although not this soon in its life); but the engine stalling out is infuriating me and I want to punch it. Again... it has only happened when I am coasting, about to stop... it doesn't happen frequently but it is embarrassing when it does.

Don't get me wrong, when I bought the car I was prepared to shell out for its maintenance. But I expected the tranny to last till at least 90-100k, and I never expected the engine to misbehave (Ward's 10 Best engines for several years).