No, there is no way to make the PTO live, that is to say the PTO shaft gets its power from the transmission therefore when the clutch is engaged, the PTO looses its power. Since the hyd. pump is driven from the PTO, this causes loss of hydraulics as well. Several people have posted procedures for using an auxiliary hydraulic pump run from the front of the engine to keep the hydraulics live. Also, the "slip clutch" mentioned sounds like an ORC (over running coupler) which prevents the transmission from being driven by the implement when the clutch is engaged. The best example of this is using a rotary brush mower, which has a large flywheel. When the clutch is engaged, the flywheel keeps turning, thereby turning the transmission and keeping the tractor moving eventhough the cluth is engaged. This is a bad situation if the tractor is pointed at a car, building, etc. The ORC will allow the PTO to spin faster that the transmssion, allowing the tractor to stop eventhough the implement is spinning down.
You definately want to invest in an ORC - it slips over the existing PTO - but if you want live hydraulics, look at an NAA instead of an 8N.