Thanks for the replies. I gave up on that one and bought a 96sr today that runs well just needs some tires and maybe front end work has a wobble at low speed. No record of timing belt so thats first on my list.
Yeah, I think you did the right thing.
Also, thinking a bit more, Grasscat encountered a similar issue with his old 98 Montero. Turned out to be a phenolic spacer/guide in the xcase shifter broke and jammed his shift lever up in 4wd. He was lucky and was able to disassemble and remove the broken parts so he could shift it into 2wd to get it home.
For the timing belt, you can remove the front plastic covers enough to see the timing belt and determine just how bad it looks. However your safe bet is to just change them on principle along with the tensioner, pulleys, water pump, front cam seals, front crank seal, and other accessory belts.
Anyhow, looking forward to seeing pics of your 96.