After my brother had this 2WD (2003) Tacoma lifted, the gear shift never properly revealed which state the transmission was actually in. N actually meant D. R meant that the orange indicator wasn't even showing. Some showed orange mixed between shift settings. It was pretty dangerous to say the least and relied entirely on feel and hope that the transmission was properly and fully shifted from one state to the next.
Fixing this is pretty simple.
- Put wheel chocks around one of the tires
- Turn the truck on
- Shift to N
- Turn off the truck
- Climb under the truck
- Look for where a metal rod extends from the gear shifter location and is bolted to another metal rod which leads to the side of the transmission.
- Loosen, but don't remove the nut for this connection
- Get back in the truck and move the shifter so that the orange readout actually shows up next to N
- Go back under the truck, finger tighten the bolt, then torque to 10ft-lbs
- Turn on the truck and test shifting (some adjustment might be necessary)
- Don't forget to remove the wheel chocks when done
This didn't resolve the problem entirely, but it's nearly perfect and won't confuse a state inspector.