yes your tranaxal is worn and will fail when maybe the next time you run it
(if you repair the engine) or maybe in 10 years. if you are looking to
repair this look into a short block. It is a factory built block with all
the internal workings and you put on the old carb, head, flywheel, etc. 99%
of the time this is a more cost effective and better way of repair instead
of rebuilding the old engine. Before you put any cash into fixing this
unit you need to consider this
- the age of the unit (average expected life of a tractor is 10 years your
is 20+ years old)
- the cost of repair compared to the price of new

once you get over 1/2 the cost of replacing the unit to fix it the decision
you have to make is it worth putting that much cash into a unit that is 21
years old or spend the extra and get a new unit with warranty et. as no
matter how you fix your tractor you will still have a new engine (or what
ever parts you put in it) in a 20+ year old tractor.