If it bound up on dry pavement, its normal. Try putting it in reverse to remove the binding. Toy 4Runner/truck tcases are what the Cruiser world might call center locked; that is, it mechanically ties the front and rear together. That causes binding on dry surfaces, where 4wd should not be used.

Doesn't sound like a worry. What does, is a failed tranny. Why?

-Bill
'87 4Runner w/ '96 5VZ-FE, 'Red Chili II'
'97 Taco XtraCab 3RZ-FE, 'BlackBean'
TLCA # 13257, Rising Sun 4x4 Club Land Use Coordinator
"He who stops being better stops being good." -Oliver Cromwell