FJ40 Transfer Case will not go into 2wd

I am having trouble getting my transfer case to go out of 4H.  It will shift to neutral and 4H and that is it.  I have jacked up the front end and the front tires move by turning the drive shaft so I know the flanges are not broken (I have stock flanges not locking hubs, I will be putting in locking hubs soon).  I am thinking something in the transfer case is bound up or broken.  Is there a good shop in town that rebuids transfer cases cheap?  Also, it is not in 4 wheel drive.  When it is on jack stands only the rear tires move.

Edited by 4RUNNERB12 - 27 July 2009 at 4:43pm

What year is your Cruiser?

If it is an early 40 the vacuum diaphram that engages the front drive shaft may need to be replaced as well as the vacuum shifter on the firewall.

If it's a latter model:
Most people check the shifter linkage but it seems that yours is working since you're able to shift from 4Hi to N.  I would still remove the boot from the top and look down and make sure the linkage is working as you try and move it.

From Ih8mud:
Could be a number of things keeping it in 4wd...

Bent/broken/missing linkage...
Bent shift collar in T-case...
damaged gear/fork in T/C...

Most common IMHO, where the shift lever contacts the 4wd selector shaft on the t-case, it pops out of the channel it is designed to be in, essentially it isn't moving any parts.

Get under the rig and try and push the shaft back into the t-case, have someone move the lever in & out of 4wd while you watch... (tranny in neutral please)

Or it could be your shift rod that allows you to go from 2wd to 4wd.  Sometimes it gets corroded or rusted and gets stuck.

I've got a PDF version of the service manual for the Land Cruiser transfer cases and transmissions if you'd like it. 

Also, if you do have to pull your t-case you'll need a puller to divorce it from tranny.  I've got pics of my t-case being taken apart if you think they would help you.

If your linkage is jacked up you might be in the 4wd position but it may not actually be engaging.  It's worth the effort to check your linkage and shift rod to make sure that everything is as it should be.