Lablue, the PTO switch is under the operator's platform on the left side of the tractor. There's a flat metal arm welded to the PTO mechanism with an adjustable bolt that engages the switch. Because you said that the PTO light is on constantly, I am going to guess that this switch is open. That causes the engine to refuse to turn over when you put the key to the start position. It sounds backward, but when the switch is open the light comes ON. When the PTO is disengaged, the contacts of the switch close and this provides the signal needed for the engine to crank and the light is extinguished. This logic is a little confusing, but if you look at the switch and see a loose connection, that would also be the same as the switch staying open and goes along with the problem you are experiencing.
BTW: it's easy to see the switch if you remove the left-rear wheel, but thats a pain to do. I think if you get someone to move the PTO lever while you look under the platform, you will see everything working and be able to locate the switch.
If your problem was somewhere else, you would not have the PTO light illuminated, so I think your problem is surely the PTO switch or an open wire in that circuit.
Oh yes... One thing I forgot to ask is if you have a mid-PTO installed on your TC35D? if so, it could cause the same problems as the rear PTO safety switch. You will need to check both switches if that is the case.
EDIT--EDIT--EDIT: Here's some more info after I looked at my Repair Manual. Not only can the main or mid PTO safety switches cause a problem, but if the operator safety circuit fuse is blown, it will indicate just like the switch is open (It may be a circuit breaker on your tractor). Remove the instrument cluster by taking out the two philips-head screws. Look at the 2nd fuse (or circuit breaker) from the left in the fuse block. This is fuse #2 for the operator safety system and the fuel cutoff solenoid. If it is an 8 amp CB, all you will have to do is reset it. If it's a fuse, you will have to replace it. I'm sure your problem is either this or some other component of the operator safety system. If could be a relay malfunction, but I'd check the fuses and switches first. To get to the relays requires removal of the black cowling under the steering column and thats a lot bigger job than checking the switches and fuses. /forums/images/graemlins/smirk.gif