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Sounds like you have a big ,expensive mess. Using it with the reverser in "reverse" all the time, with the gear-trans in "reverse" - to work in forward direction - is a bad idea. The hydraulic reverser is much weaker in "reverse" position - especially earlier 350s. That because the input shaft has to turn counter to the output shaft, and the early machines have a small, inadequate counter-bearing between them. With the mid-range 350Bs, it got beefed up a bit with a different front drum, shaft, and larger bearing assembly. You've got burned clutch packs, and perhaps two shafts that have virtually welded themselves to each other. It could easily cost over $4000 if you have a dealer fix it. And - some of the early parts are not available and require and upgrade that can add on a lot more money. If it were mine - I'd shop around for a used, but not trashed reverser if priced reasonable. Then, pull it part, fix as needed, and use it - instead of fixing the one in it. If you are going to pay someone else to fix it - check around and find someone that has experience. Many Deere dealerships do not - and with just screw up the job and cost you a lot of extra money. Bearing endplay is critical in these reversers and is often done wrong which leads to a quick failure after a so-called rebuild.
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