Let me guess, you have a front end loader and no power steering?
I had the same thing happen to my 202 (pretty much the same as your 35) twice. The second time I got smart and designed a hydrostatic power steering system for it.
There are recirculating balls and a worm screw assembly. What happens is from the torque you are placing on the steering shaft, the ball bearings either get worn down or crushed and start popping out the sides of the "block" that houses them. The unit is probably beyond repair by now and will have to be replaced.
Scroll down the page and you will find a replacement steering shaft which includes the ball screw assembly. Problem is if you have a lot of weight on the front end (loader especially) you will eventually break it again. You need power steering if you have a front end loader.
I was able to achieve a very good power steering system, much better than original for around $700 or so with some used parts.
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Today's Featured Article - What Oil Should I Use? - by Francis Robinson. I keep seein this question pop up over and over again in discussion groups all over the web. As with many things there are often several right answers and a few wrong ones. Some purist I'm sure will disagree to no end with what I will tell you but most of us out here in the real world don't really care do we ? Some of them only bring their noses down out of the air long enough to look down them anyway. If you are like me you are only doing this old tractor stuff because you enjoy it. You
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