Is my transmission broken

Hi everyone. Thanks to the help of this forum, I learned that I
have a 1955 ford 800. I have three questions. The first is
simple. How do I know if my pto is live or a transmission pto?
Model number 850 71442 is on the transmission right about
the starter.

Next. How does the differential work? When I put the
transmission into any gear, jack up the back wheels, and try to
turn the wheels manually, they both spin freely in opposite
directions with little effort, but the engine does not turn. Even
thought it's in gear. Is this normal, or is the transmission
broken somewhere?

The third question is a little bigger. The engine is seized and I
don't know what to try next. We tried filling the cylinders with
atf/acetone and letting it sit for two weeks. Did nothing. I took
the head off and and the oil pan off and found rust in two
cylinders. I've sprayed rust remover in the cylinders and on
the pistons but I still can't get them to move. What should be
my next step?

Thanks so much.
 

Model 850 tells you it is a transmission PTO. Live PTO would be an 860. It would also have two holes in the clevis on the clutch rod if it were live PTO.

Your transmission/ differential are acting normally. If you put it in neutral and spun a rear wheel they'd likely spin in the same direction.

Are you sure your starter is not locked rather than your engine seized?
 
What you're describing is what I have, I think. Here are some
photos of the clutch rod.

So it has a brand new starter and electrics system. Since you
responded, I took out the pistons and, though one is a little
stiff, they all slide in the cylinders and are disconnected. So I
assume now that means my transmission is seized?

Things I have off already: pistons, head, valve cover, exhaust,
intake, starter, carb, gas tank. The engine is down to just the
crank shaft but still no movement in the crank shaft. I've put it
in every gear and turned one wheel with the other on the
ground, and the crank shaft seems as though it doesn't even
flinch.

Any ideas? Both about the transmission and the PTO
a150652.jpg

a150654.jpg
 

Somebody may have cobbled that up. IF the number is clearly 850 and not 860 you have a transmission PTO. The pin in your picture looks like it's been brazed/welded into the clevis where a two speed PTO would be inoperational to boot.

I don't know enough from what you've told me to condemn any component behind the engine.

What happens with both rear wheels jacked, transmission in neutral and a helper on the other wheel? Will they both roll the same direction?
 

Further thoughts:

So you are telling me the camshaft and tappets are out of the block?

You are telling me the starter is removed (I don't care if it is new)?

You are telling me the hydraulic pump is removed?

You are telling me any auxiliary hydraulic pump is removed?

In other words, to be plainly honest, it doesn't sound like you done enough homework on the engine to be looking beyond it for the problem.
 
Update: I got it unseized! The engine is turning now when I turn the wheel! After taking off the pistons I threw a wrench on the crankshaft bolt and gave it a turn, then put it in gear and turned a wheel. Presto!

So now the last bit is about the PTO. I pulled the pin out and put it in backward on the second hole, in order to engage the clutch better. These are of the clutch the way I found it and here is the serial number.
a150659.jpg

a150661.jpg
 
The two holes on the clevis does not mean live PTO. The 860's had a double hole clevis, but so did many a 850, my 850 included.
 

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