Haha, just went to a dealer and took an 06 sequoia out for a spin. It's got the same VF4AM electronic transfer case. I pushed the 4WD button and waited for like 60 seconds before it finally went into 4WD. It took forever to go back to 2WD as well. I made a comment to the guy showing me the rig, who used to be a Toyota mechanic, and complained about Toyota going to the electronic actuator instead of the lever. He said he spent 15 years at Toyota, and he never heard of electronic transfer case actuators going bad.
We cruised the lot and looked at a second Sequoia, same year, same actuator. It said in big letters on the window "bad transfer case actuator- waiting repair"
He said again he's never heard of them going bad, and told me it was an internet myth. I said "50% of of the Sequoias on your lot have a transfer case actuator problem, and you still don't believe me?"
Decent guy, but it goes to show, do your own research before heading to the car lot. Also, remember to cycle your actuator when this thread pops up!