I am not much of a maintenance or troublshooting guy but I have two thoughts.
It sounds like pilot bearing trouble. Although I have and use a 504, I have never had any clutch or TA problems so I don't even what kind of access you have for testing the pilot bearing even if that can be done.
The other thought is the integral IPTO gear and hollow shaft is putting a drag on the clutch shaft, that runs inside of it, when the clutch is disengaged. Not sure if there is access to clean that annular space with air or high pressure water.
Apart from those two suggestions, I think most people would say you have pressure plate or clutch disc problems. They may be right. Have you tried Red Power forum?
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Today's Featured Article - The 8N and the Fox - by Zane Sherman. Dec. 13 1998, Renfroe, Alabama. Last niht I dreamed about the day that I plowed the field of about 10 acres over on what Jimmy and Dandy called the Ledbetter field. I was driving the 1948 8N Ford tractor that Jimmy bought in 48 new This was prebably in about 1951 and maybe even befor the house was built. This would have made me to be about16 years old and I drove the tractor for nothing and would have paid to drive it if I had had any money which I didn't, but neit
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