No really, my brother has the same vehicle as me...a '97 4Runner Limited.
He's not an off-roader, so he never uses 4WD...and I found out why: A couple years ago I was driving it and went to put it in 4WD, and WHIIIIIIIIRRRRRRRRRRRR!!!!!!!
...it was stuck in neutral. No shifting between 4L-N-4H...no shifting OUT of 4WD, it was just stuck in neutral. If I remember correctly, I sat there rolling through all the gears over and over and it finally clicked out of neutral into D. Scared the hell out of me (I didn't have my 4Runner at this time, and thought I destroyed his tranny), and he later told me "That's why I never put it in 4."
Well, after a week of ice and a couple days of 6" of snow, the poor guy was sliding all over the place, while I was offering to shuttle people who couldn't even get out of their driveways. He asked me if I knew how to fix this problem, or if this is something common with a quick fix. His 4Runner was a lease return and only about 4 years old when he bought it, so I'm certain it wasn't an abused vehicle...unless previous owner drove around with it in 4WD on dry pavement all the time...ANY thoughts?
Thanks!

 

Have you tried putting your shifter into neutral then putting it into 2wd H? Sometimes
4WD's wont go back to another setting unless you put the other shifter in neatrul.

 

You have to be stopped and have the tranny in neutral to put it in and out of 4wd mode, should work fine like that.

Also, check behind the drivers side sun visor, it should have a sheet there telling you how to do it unless someone removed it.