Okay, so like you said, the transfer case is probably good because it spins the front prop shaft, so that tells me that the auto-locking hubs are not working. Since you are new to 4wds, the front hubs are a device that connects and disconnects the front wheels to the front axels. This allows the front wheels to turn without making the axels and diff turn when in 2wd. Reduces wear and tear and improves ecomonmy. Your hubs are not connecting the axel to the wheel.
I am yet to learn how the 4runner hubs work, so I would try doing a search on this forum for automatic locking hub problems and see if any others can help from here.