The key to your problem lies in the serial number suffix. Sounds like it has a "R" which is TA attachment with provisions for transmission driven PTO. If the serial number ends with "P" or "S", just do as you initially suggested.
If you want IPTO, buy another tractor cheap (needs work) with the "S" suffix. Use the center section and rear section.
This will work but you may find that the IPTO will not run at the proper speed (540 rpm) if buying a row crop. I think the IPTO driven and driving gears are different between the models. You will have to check the parts books.
You need to understand that the IPTO gets its power from the clutch pressure plate. The transmission PTO gets its power from the constant mesh gear and countershaft in the transmission. This changes alot of parts. The easiest solution would be to swap your Diesel into a "S" suffix Utility with a bad engine
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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