Brian,
I would imagine that you have a 2-stage clutch, which means that your PTO should disengage when you push the clutch in HALF way. I had this problem once, and was able to fix it with help from Dick Bargeron. Here is his explanatin of how this works, and how to adjust it:
</font><font color="blue" class="small">( From: rbargeron
Hi Bill: You are on the right track. Adjust the linkage until the pto will disengage (pedal full-down). Do it with the tractor shut off - with the clutch all the way down you or your helper should be able to turn the pto shaft with your hand with the pto gearbox in either hi or lo.
Now comes the interesting part - it is a two-stage clutch, the second one is for the driving wheels. With the linkage adjusted enough to release the pto at full travel, see if it comes back enough to fully engage the drive wheels.
As the drive-wheels clutch gets worn thinner, the linkage needs to be adjusted so it doesn't slip under load. Unfortunately, that affects the engage/release point on the pto clutch too. It will get to the point where in order to have enough engagement of the drive wheels, it will not have enough throw to disengage the pto. Then the answer is to split it and put in a new drive-wheels clutch.
It isn't too big a job - flat concrete floor and two floor jacks so you can roll the two tractor halves apart. Will take several hours - should get a manual. Or (as I never think of) take it to a dealer and beat up your checkbook. )</font>