Are you positive the slider knob (when you move from cold to hot) is moving the blend door wire? You can see the wire hanging down on passenger side below the glovebox. I have a 97 limited also, and had a blend door issue last month causing no heat. Find that black wire hanging down, and yank it over to the left. See if it fixes your issue.
Reference thread:
http://www.toyota-4runner.org/3rd-gen-t4rs/246176-no-heat-my-truck.html
Reference thread:
http://www.toyota-4runner.org/3rd-gen-t4rs/246176-no-heat-my-truck.html