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I have a 2001 sequoia and not sure if i have a transmission problem or transfer case problem, i was having some problems where when i left a stop sign it sometimes felt like it jumped forward and then last week while going up a hill it just stopped going up and i had to pull over and did'nt have any gears at all and thye car wouldnt move, i tried every gear but nothing but some low grinding noise, when its running now you can go thru all gears and nothing and you can even shift the 4 wheel drive shifter with ease and nothing happens and it feels to easy to shift the shifter for 4 wheel drive, does anyone know how to tell if it is your transmission or transfer case that is bad when the car won't go in any gear !!! Any help with this problem will be greatly appreciated !!! Thanks
 

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I would guess it's the tranny, since you're not able to move in 2WD mode. Doesn't the transfer case just transfer power from the transmission to the front when 4WD is engaged? If tranny was OK, you'd still have RWD. Just a guess.
 
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