td5 manual lost drive

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My daughters td5 has lost drive.going along heard a donk and lost drive.clutch seems ok.i moved hi/lo selector back and forth incase had popped out.feels as though going into gear engine running with or without clutch.any ideas please before I pull out gearbox transfer box.oh no signs of impending doom before this happened.
 
Gave it a few good tugs between high and low.

It's quite possible the cable has snapped/corroded and although you are moving the lever you are not necessarily engaging high/low ratio. The downside to checking this is that you need to remove the tunnel and drill out a few rivets (I've just done it to replace the gearbox). However you might need to do this anyway if you need to replace/repair the gearbox.
 
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