You might go with 10W40 but no heavier, you'll blow it that much faster. If it were mine I'd stick with the 10W30 winter and 30W in the summer and just keep adding the oil. Synthetic might help - I doubt it will hurt. Oil is cheap compared to the cost of rebuilding this engine.
The KT17 is a real POS (even the series II) compared to the older single cylinder K321 or K341. You'll think twice before rebuilding it, to do a decent job you are looking at several hundred dollars - a lot of people get into the $600 range and higher (some times much higher) which in my opinion is obscene for what these engines are. I used to think I wanted a red Cub 782 but after reading the issues people have and seeing the costs associated with getting one running I decided I'd stick with my 1450. Decent rebuilds on the older K series are in the $120 to $190 range - including machine shop.
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Today's Featured Article - Gettin My Old Tractor Home - by Clayton Sweeney. My name is Clayton Sweeney. I am from Southern Maryland in a small town called Lothian. I am 20 and my father and I are the proud owner of a 1954 Allis Chalmers WD-45. When I was 18, I dated a girl in the next county over. Her family are tobacco farmers. It was a cold Thanksgiving evening, and we were going up to her Grandparents house. As we passed one of their barns, I noticed something orange in the corner of my eye in this old shed. It was pretty dark and I asked what it was
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