That is a splash guard to keep oil away from the elbow which acts as a breather. Don't plug this hole. The opening in the elbow should be down. As things warm up and the oil and air inside expand this breather allows air to escape and keeps oil from leaking past the seals. Every gearbox on those tractors is vented. The transmission and rearend vents through the gear shift tower. The rubber boot covers a groove on the front of the casting. Both final drives have small vent holes below the input shafts that vents into the cast tube.
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Today's Featured Article - Timing Your Magneto Ignition Tractor - by Chris Pratt. If you have done major engine work or restored your tractor, chances are you removed the magneto and spark plug wires and eventually reached the point where you had to put it all back together and make it run. On our first cosmetic restoration, not having a manual, we carefully marked the wires, taped the magneto in the position it came off, and were careful not to turn the engine over while we had these components off. We thought we could get by with this since the engine ran perfectly and would not need any internal work. After the cleanup and painting was done, we began reassembly and finally came to t
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