Cap the two lines coming out of the transmission. You will need two 1/4 inch flare fitting caps. If you can find steel caps that is best. Steel ones should be 37 1/2 ° flare which is what the tractor uses. If all you fan find are brass they may work n\but most likely they will be 45° and may fail as you can develop pressures in excess of 5000 PSI.
Capping the lines eliminates all the controls except the lever. That is a good test to see whether the problem is inside or outside the transmission housing. Make sure you have enough room around you so that you can stop by shutting off the engine if you have to.
It is kind of strange that the Foot-N-Inch valve did not stop the tractor. It's function is to control the pressure at which the high pressure relief valves open. Depressing the pedal results in both high pressure valves opening and the tractor will stop. Normally any failure results in the tractor stopping. I would lean toward servo problems since the pump servo controls both forward and reverse functions. The motor servo only controls the speed in the upper forward range.
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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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