If the TOD wheel lights are lighting up then the TOD ECU is happy and thinks all is well. This can happen if there is a completely blown CV joint, missing prop shaft, or it the TOD has been modified by a previous owner. What doesn't make sense is that 4lo is working correctly. This would indicate prop shaft and CVs are ok. Any possibility the PO modded the TOD system? You can look under the passenger seat to see if the wiring bundle to the TOD ECU has been modified.