Unless it has the "two stage clutch" mentioned below (I never saw one with that option but I'm pretty limited in my experiance with them) the same clutch that engages the transmission also engages the PTO. You can have the tractor in neutral and the PTO will work (starting and stopping with the clutch) but when you are mowing anytime you step on the clutch to stop the tractor the PTO will stop too. That makes it a pain to use when you need to slow ground speed for heavy clumps of grass.
It should run a couple small cylinders (general common sense on IH's part), but as I mentioned the one we had didn't have any remote hydraulics - only power steering and a fast hitch.
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Today's Featured Article - Identifying Tractor Noises - by Curtis Von Fange. Listening To Your Tractor : Part 3 - In this series we are continuing to learn the fine art of listening to our tractor in hopes of keeping it running longer. One particularly important facet is to hear and identify the particular noises that our
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