Transfer case swap now stuck in 4WD Low?

[makeitso2008]

I have issue where my 4runner 4th gen V6 4WD in 2WD mode will not go past 20-30mph. I can hear a slight chug and after that it will not engage. After about 10-20min it will start up and go 20-30mph for a few min before not engaging again. Well I thought it was the transfer case because my 4WD HI/Low hadn't been working for a long time. I bought a used transfer case with 82k miles and swapped it in. Now the car won't engage and it's stuck in 4WD Low?? Anyone have a remedy? I'm guessing it maybe the used transfer case or transmission?

thanks

 

[Syr4RinNC]

Does it shift easily into all the gears? Like if you take the stick and go 2-3-4? You feel it settle in each gear?

 

[makeitso2008]

negative when i accelerate the RPM's don't move and when it's in Park it's as if it's in Neutral. I have to chock the back wheels so the car doesnt roll out the garage.