Well the two main causes for this is (1) low hyd. level and (2) a bad seal and loose pick up tube . IF the hyd. oil level is where it should be then the reason is that at one time or other the pick up tube got banged and dented and it is flopping around and this allowed the seal that is NOT IMHOP a vary good design to leak and suck air . As long as the level of oil is kept up with and you do not work on humps and bumps it's ok , but when it gets low and your going down hill it sucks air . SO if i was YOU i would drain the rearend and pull the PTO and put in a new clutch pack and fix the pick up tube and seal. . If you find that the tube is dented you can use a CRAFTSMAN deep well socket to get the dent out by driving it down into the tube just enought to get the dent out and you will have to pull the socket back out .when the tube is positioned correctly it has a little tilt to the left when looking at it from the shaft end. When reinstalling you must tip it upso that you do not bump the pick up tube as the damage easily this also applys to removal.. Set clutch lock up pressure on a 1066 to around 245 -255 psi .
 

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