Yeah, elevation measurements using either the barometric altimeter or GPS (say, the 205) are estimates at best. On a short, flat ride like you had, you could have been experiencing changes in barometric pressure due to weather. That will make the GPS THINK you're changing elevation.
Calibrating often when you are at a known elevation, like a USGS benchmark, or a peak marker will help, but not eliminate the problem. Even DEM data has an effective resolution. For most, a 30m square area (pixel of DEM data) is given the same elevation. So short, minor changes can be missed if you rely too heavily on that data. If you're lucky, you might be able to find better than 30m resolution DEM data, but not likely.