BP,
If I were guessing, which I'm not, I'd think you're trying to get through the break-in period without running at steady full speed with little load. If that's the case, then I understand where you're coming from. Mowing is tough on a new engine, in that it limits your speed to a constant steady rate, instead of varying speed and load as most recommend.
Having said that, I bush-hogged about 20 acres with my
L3400 with about 20 hours on the clock. It had to get done, and it was the only tractor I had to do it with. I did try to vary the rpm a bit, between 1800 and 2400 (my 540 PTO speed is about 2350). Also, stopping and backing up for corners, I dropped the rpm for a few seconds, then continued. Letting the engine idle for a minute after every ten minutes of mowing might not be a bad idea either in your case.
I did make sure that when I went through heavier grass that the rpm was close to where it was supposed to be to avoid lugging the engine.
If it were me, I'd run the PTO at the correct speed and vary the engine rpm a bit, rather than use the 960 setting. I assume the mower calls for 540? If so, overdriving it won't help the cause, though it will undoubtedly do a great job of cutting the grass. Running the engine speed lower to get the correct PTO speed won't do the engine any favours either, but as long as it's not lugged it shouldn't hurt it. How much more does it labour starting the mower at 960 than 540?
Sean