Just a little more input for what it's worth. Just took delivery on a new 4120 a few weeks ago. My local dealer and I go back a long way - they've been in business since Custer was a corporal. He was very adamant about this - my engine comes with break-in oil from the factory. It needs to be changed at 50 hours - but no sooner. Better a few hours over than under. The rings need to seat properly and that takes a little friction. Now, I'm a big proponent of synthetic oils and I use them in everything I own. But - I will probably go one oil change with conventional Deere oil, then switch to synthetic just to be sure she's fully broken in. Plus - my dealer gave me the oil and filter for the first change! After that, the interval in the manual is the way to go - no need to change it on any other frequency. One exception would be if you go more than a year between scheduled (based on hour meter) intervals. The oil should be changed at a year. Time is an enemy of oil as well due to the products of combustion - i.e. water. One more quick comment. My tractor has the 4 cyl. Deere PT turbo diesel engine. The 3320 has a 3 cyl Yanmar. There could very well be a difference in how they are properly broken in. I'd ask your dealer - if he doesn't know, somthin's wrong bud!
-George