Problem might be bad switch
I bought my 2000 V6 SR5 5spd manual from the original owner who passed on to me all his maintenance records. All work was done at a Toyota dealorship. When I read through the folder, I noticed one work order at 73,388 miles that said, "4WD won't engage." The tech's notation was, "Tested 4WD circuit, replaced bad position switch." The labor was $130 and the part was $71. The part number was 84222-35110.
Then 22 months later another work order at 95,994 miles stated the same problem: "4X4 won't engage." The tech's notation said, "Tested 4WD electrical system, found bad transfer engagement switch, replaced switch." The switch cost $73 and the labor was $150. Interestingly enough, the part number was a little different: 84222-35080. Same switch or improved version? I don't know.
Are the above work order "switches" what other posters are calling a "sensor," that needs to be kept clean, or something different? Whatever they are, they appear prone to go "bad"!
FYI: I have owned my Runner for almost four months now, and I love it. I haven't done any mods yet, but it's amazing where all you can take a stock 4Runner if you have good tires and you don't have to worry about babying it too much, because it's not your daily vehicle. I have put 3500 miles on mine, nearly half of it on jeep trails and rough forrest roads near my home, including snow and ice already this winter. I use the 4WD two or three times a week, and the rear locker gets used at least once each trip to get over trouble I saw in advance or out of trouble I didn't see. I have had no problems engaging 4WD, so the newer switch must still work well, but one time I had trouble getting OUT of 4WD. The problem wasn't the switch. The solution was mentioned above by another poster--when I stopped, backed up, and then went forward, there was a clunk and I was out of 4WD. Lesson: don't try to engage or disengage the 4WD while you are accelerating. I was going down a hill, still accelerating even with my foot totally off the throttle when I tried to disengage 4WD. The manual says that's a no-no.