Ok well after a day of hammering prying and cut wrists from moving around in a tight area it still does not open.....
I am pretty fed up I think I might have to take this to a stealership. The latch will not release at all.

 

Well I got it open. It basically opened all by it's self kinda at a bad time coming down the ramp in the parking garage.
I was transporting 8 dell pc's from downtown to the hospital where I work.
Luckly the rear cb antenna kept it shut. It was 1/4 open.
Maybe spraying the the cooking pam down on the lock mechanism helped some....
I'll tell you in a pinch if you have no wd-40 or lube available Pam cooking spray works really well...
Anyways off to the dealer for the pricey $147 lock latch.

 

HuskyRunner, how is the latch fix working for you now that it's been a few years? Mine is having the same issues and I'm contemplating installing a new latch assembly like you did. They are available at toyotapartsbarn.com for $93+shipping.

 

Awesome info on here.Thank you guys.I sure am not giving up on getting this back hatch fixed by me.I was given a quote of 500 dollars to fix it .After reading your post I believe I can save some money with patience and take my time.Thanks again.

 

WD 40 worked, we cut the rest of that stupid shredded up rubber off to