Ok guys, I'm torn. I spent some time looking this monster over last night w/ a person who's a skilled welder and "knows" metal. He doesn't know tractors, but knows metal. He poked and prodded and the good news is the deck is actually very sturdy. Pronounced: should contain things that go flying off
As I looked at the pulley set up my thinking is it's there for 3 reasons.
1.) probably to speed things up so the PTO can be run at a lower speed.
2.) More importantly I think it's there to reduce the angle the PTO comes in at. If I look at new or newer cutters the gear boxes are considerably raised off the deck so the PTO shaft comes in at a pretty low angle. Not sure if you can tell from the pics, but on this thing the gear box is basically sitting right on the deck. If you were to run a PTO shaft to it the angle would be so steep you'd eat PTO shafts in no time.
3.) The belt system I'm sure is there for some "give" when/if you hit something.
The gearbox and bearings appear ok. Obviously they'll need some cleaning and grease but there's very little play if any at all in them.
The plate the blades attach to also appears to be in dirty, but decent shape. Not bent or mis-aligned. Again, some TLC should make it useable.
The blades...well, they're basically worthless. Along w/ the "bolts" that mount them. Probably depends on size etc., but does anyone have any idea what a beater set of mower blades for something like this would cost?
So I'm thinking I'll remove the blades, clean and grease her up and spin her up at a low speed w/ no blades. If it seems to be in ok balance and doesn't shake herself to death I'll proceed from there. That would include buying some new blades and mounting bolts. I have a wheel laying around I can rig up as a tail wheel. I'd think a wheel rated for 300lb should be fine. I think I'm willing to invest that much $$ to see what happens. Plus, it's tinker time!
I realize these machines are very dangerous, but the deck is solid and spinning up slowly w/out blades to begin I think is reasonable. My question though is w/ that pulley system I'm thinking I better not be turning 540 on the PTO and I'm not sure how to calculate a "safe" operating speed.
Pycoed: I have no idea what you're talking about. What pulley angle are you describing.
To all who suggest buying new/used: I know $600 in the scheme of tractors is not much, but it's about $550 more than I have

Seriously, one of my sons has some severe disabilities so basically all of our spare $$$ goes to paying medical bills our insurance company refuses. And that is quite a pile.