Welcome to the forum.
The speed is definitely read by aggregating the input from the ABS sensors. There is a revolution sensor on the gearbox, and it uses that information along with the ABS sensors to determine whether or not you have traction. Too great a mismatch between the ABS and revolution sensor and 4WD is locked out as Leprechaun said.
The ECU is quite accurate with its speed IF you have standard (255/70R16) tyres on. The speedo is NOT accurate, and does not reflect the speed that the ECU knows - the needle itself is out, not the ECU.
Fitting a Jaycar Speedo Correction Kit to the Navara will probably just break the Navara. At best, you'll never be able to engage 4WD because the kit will always toss a bad signal for the revolution sensor on the gearbox!
If you're trying to get an accurate speed, go and buy yourself a cheap GPS unit and use it - at worst they have about 1% error. You can also get them for as little as $79.