You say tractor was running so this is probably not the case, but , I have seen a jillion of these battery ignigion units (IH style) where some one used a screw to hold stationary point that was too long and it just tears heck out of inside of distributor, sometimes striping the gears, shearing the pins securing distribtor gear, and tearing up the whole advance mechanism. Also, have seen just rusted shaft in distributor causing pin to partially shear. You need to pull distributor and work your way inward to determine problem. Could be most any of the things others have suggested.
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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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