Since there was no "bang" or other loud noise, I'm still thinking it may be something simple. Obviously, you have narrowed the problem to the gearbox and not the transfer case. The first thing I would check is to make sure that the shifter is actually doing it's job. Pull the top cover and shift knob off. Make sure that there is no excessive wear (some of the S3 shifters are very prone to wear at the shift ball). With the shifter out of the way, try to manually engage another gear other than 4th and see what happens.
It's very unusual that 4th would work and nothing else unless the problem is simple.
61 II 109" Pickup (Restomod, 350 small block, TR4050)
66 IIA 88" Station Wagon (sold)
66 IIA 109" Pickup (Restomod, 5MGE, R380)
67 IIA 109" NADA Wagon (sold)
88, 2.5TD 110 RHD non-hicap pickup
-I used to know everything there was to know about Land Rovers; then I joined the RN Bulletin Board.