If the bearing on the worm shaft is missing balls, it's shot. It doesn't matter how well it spins. It's possible that the missing balls from the bearing could have caused some damage to the gears if they got into the wrong place at the wrong time in the gearbox. Look them over very closely. The worm shaft bearing is not a standard radial ball bearing. There are/were two types available from IH/CIH. One (ST225BT or ST225Y) appears similar to a standard ball bearing, the other (ST678) is a heavier multiple-piece bearing. Some may tell you that replacing the worm shaft bearing with a standard ball bearing will be fine, and for fartin' around fairgrounds and in parades, it'll probably do ok, but using the loader and carrying extra weight up front will stress that bearing even more.
The thrust bearing assembly on the vertical shaft can cause binding sensations, too, if it's worn out, pieces are missing/damaged, or is full of dried out grease. With as much play as you say you have, there may be an issue with this bearing.
If the woodruff key is on the vertical shaft behind the removable panel in the bottom of the grille, it is for an arm that was used for steerable cultivators.
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Today's Featured Article - Tuning-Up Your Tractor: Plugs & Compression Testing - by Curtis Von Fange. The engine seems to run rough. In the exhaust you can hear an occasion 'poofing' sound like somethings not firing on all cylinders. Under loaded conditions the tractor seems to lack power and it belches black smoke out of the exhaust. For some reason it just doesn't want to start up without cranking and cranking the starter. All these conditions can be signals that your unit is in need of a tune up. Ok, so what is involved in a tune up? You say, swap plugs and file the points....now tha
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