Do a compression test and if the engine is worn out, speaking from personal experience, scrap/part out that one and look for a tractor in better shape.
You should be able to find an H or SH restored with 3ph for far less than you can redo that one.
1.YES the distillate engine has much lower compression due to the head having big chambers. Replace the head with one from a gas engine. Distillate heads have little value. Manifold and carb are different. Distillate manifold and carb in good condition have some value. Look for a SH,300,350 manifold and carb, especially if your going to rebuild it to SH or 300 specs.
2.The live hydraulic pump replaces the drive assembly that connect the timing gear cover to the mag. The mag will work but I much prefer the distributor ignition. The timing gear and cover on the older tractors won't work well with the live pump. Older gears are weaker and will break. Timing cover bolts holes may not line up for the pump.
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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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