The Cub's a NICE little tractor. Others with more experience with them will chime in with advice specific to them, especially with the issue with the shifter.
But . . . about your gears. A change of tranny oil will help to quiet them down some, but if second is noisier than first, that may be a clue that that's where it was used most. As long as it gets along okay, a touch of something between a groan and a howl is not cause for alarm and, to some extent to be expected from a tractor that saw a lot of work in its day.
As far as that third gear . . . First and second are close together for gear ratios. They're its working gears. It's not as pronounced on a Cub as on the bigger Farmalls, but the highest gear is basically a road gear. On the Cub, it delivers more than twice the speed over the ground as second. Road gears are notorious clutch eaters. Usually not a problem because they don't get used a lot, but they do require some SERIOUS featherin' in, even with low engine speeds. You do want to be above low idle but not much to start off in it. Too quick on slipping the clutch in the road gear and too low on engine speed, and you can drag under even a good-runnin' motor. Fixin' that by starting from a higher engine speed and you can be poppin' wheelies (undesirable!). Most Farmall folks have a hair-raisin' road gear story to share.
Before the night is out somebody is going to suggest getting a manual. Not a bad idea. The first one to get is the Owner's Manual. It will cover basic operation and basic maintenance. As it happens, it's also better than the srvice manual for things like setting clutch freeplay, which may or may not be a factor in your slow pedal return. From there, the Service Manual would be the next one to get, which will be a help if you have to break things down to fix the clutch or anything else.
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Today's Featured Article - Third Brush Generators - by Chris Pratt. While I love straightening sheet metal, cleaning, and painting old tractors, I use every excuse to avoid working on the on the electrics. I find the whole process sheer mystery. I have picked up and attempted to read every auto and farm electrics book with no improvement in the situation. They all seem to start with a chapter entitled "Theory of Electricity". After a few paragraphs I usually close the book and go back to banging out dents. A good friend and I were recently discussing our tractor electrical systems when he stated "I figure it all comes back to applying Ohms Law". At this point
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