Regardless of what the problem is that does not sound good. Could be several things, what I have seen happen is the splines on the power shift output shaft wear off and no longer drive the gear that sends power to the 4 speed trans. To fix that problem or power shift issues the engine must be removed. Rod.
 
Had that happen to mine. R&R engine, Think they had to pull power shift unit out cause they resealed that also. Tom
 

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