I just "thought" I had a similar problem and ordered the shop manual from Tecumseh/Peerless. The manual gave pretty good coverage of all transmissions except the hydrostatic and on the last 2 pages they whipped out the crying towel. The manual was printed in 2002 and they said that their current philosophy was to change them out. They gave several tips as to what your problem could be excepting the transaxle. Well on this wwww like no more than a week or two ago, I got a tip about a repair kit for the Peerless 200 series and I went to my local lawnmower shop and sure enough the kit was available at $25. It contains the correct oil and amount of it and a bellows assy. Back up thru the posts, right here, and you should find it. Additionally, respondents posted 2 sites where one could obtain a reconditioned unit. So there are 2 alternatives for you. txblu PS: My problem was a loose (worn out) belt.
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