Toyota Repair: 1998 4Runner SR5 (whats wrong with this tranmission?), 4x4 actuator, 4runner sr5


Question
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Followup To
Question -
I have automatic transmission (103K miles).  While it was snowing, I shifted to L4 mode, didn't drive over 30 mph.  Made it home, the next day when I got ready to drive, I couldnt get it out of L4 mode.  The 4wheel drive stick was stuck.  I had it towed to a toyota dealer, they got it unstuck, said the shift forks were overlapping (how this happened, I dont know).   But now, it drives as though it is still in L4 mode.  I slowly made it home (about 5 miles) driving 30 mph or less.   The dealership told me that it now needs a new transmission.  I've never had transmission problems before, and I don't feel it slipping now, it just seems to be in permanent L4 mode.   Any suggestions of what is wrong with this transmission?
Answer -
The problem is not in the transmission, it has nothing to do with whether it's in LO4 or H4, the problem may be with the front differential 4x4 actuator, it could be stuck and keeping the front differential engaged, that's my best guess, I have never seen a transmission case cause this problem, another possibility may be that the transfer case does have a problem, I don't understand the shift fork overlapping terminology either, doesn't sound right, has anyone done any repairs to the vehicle lately? Is the 4x4 indicator light on the dash on?

The 4X4 indicator is not on.  Repairs were done on the vehicle, when the truck was in 4wheel drive low.  The 4wheel drive stick was stuck and I couldn't get it to move.  I had it towed to a Toyota dealership, they got the stick shift unstuck, then they told me it was still running in seemingly low grade because the transmission was slipping.  That didnt sound right to me, and I know what a slipping transmission feels like. To me,  the vehicle just seems to be still be in low gear.  When excellerating, it rapidly changes one gear, then from that point, the gears no longer engages.  It goes up to approximately 40 mph, and the gears wont change.  I've taken it to two toyota dealerships, and it seems to me that they dont know how to clear the problem, and they are saying it is the transmission that is bad.  I just dont buy that.  Reason:  I have never had problems with the truck before.  I only put the truck in L4, and drove it for about one mile to my home. The next day, I couldn't get the gear stick out of L4.  Not risking driving it in this condition, I had it towed to a Toyota dealership.  I refuse to believe, that my transmission went 'belly up' due to what I just described.  How can I got from a stuck stick, to a bad transmission?  Also, the 1st toyota dealership that got the stick unstuck, after that maintennance is when it began the initial quick changing of the gears when I press the excellerator.  It wasn't doing that before I took it in to the 1st Toyota dealership.  It jerks rapidly, and I can feel it change a couple of gears "Very" quickly during take off.   I think my 1st problem was taking it to incompetent Toyota services.  

Answer
Again, I agree with you, it doesn't sound like a transmission problem, you said that "repairs were done" I really need to know what was done, please be specific, the repair order should state exactly what was done at that time, just telling me that they got it unstuck raises some red flags with me, something just doesn't make sense and there has got to be more information.
Were any repairs done to the transfer case or the transmission recently other than the stuck in low situation. Please try to let me know exactly what the first toyota dealer did to get the shifter unstuck, this is very important information for me to know in order to help more.