Looks like you found it,the probable cause of not being able to turn valve is probably due to seal that shaft goes thru & 2-O rings on valve body are probably age hardned/taken a set & valve body possibly gummed up from sitting so long,this problem may cure itself once you use tractor for a while & get transaxle hot.
To see pic of valve goto link below,click on toro logo,select lawn/garden tractors from list,enter 1-0435 in mod# search on left side of pg,this is a 14hp tractor,but trans is the same,look at last drawing in assembly drawings/parts list,piston-piston type(plate 4.5)look at item# 108 in drawing(bypass valve)in one of the other hydro trans drawings/parts list the older style tow/push valve is also shown on top of manifold.
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Today's Featured Article - The Day Mom Drove the 8N - by Brian Browning. My Dad was wanting to put in a garden but couldn't operate the 8N and handle the old horse drawn plow he had found and rigged up to use with the tractor. Well, he decided to go get Mom out of the house and have her drive the tractor while he walked behind the plow. You got to understand that while my Mom is a hard worker who will always help whenever she can... she had never operated farm machinery before that day. Dad got her out there, explained how the clutch was the same as in our o
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