Well the lever on the right is the two speed GEAR shifter. It basically is a Lo-Hi range shift. The lever on the Left is the speed and direction control lever. You having so much lost motion on the control lever can be several things. More than likely two combined. 1) The linkage is worn/lose and you not getting the correct movement on the control valve. 2) The hydro motor/unit is leaking internally so that you have to move the lever far enough for the flow to get larger than the internal leaks.
You need to post these questions down on the Farmal/IH forum. There are fellows there that can help you out more than I can. I have never worked on the hydro unit itself. I have worked on the gear section but I always took the hydrostatic part to a local fellow that was knowledgeable on them.
Now some general knowledge on the HYDRO IH tractors. They where not good for heavy drawbar work. It surprises me that your Hydro 100 has lasted as long as it has with poor maintenance. These tractors where great for slow speed PTO work with variable ground speeds. Many guys loved them for baler tractors. They also where used a lot in vegetable production running the harvesting units. They could be running at full PTO horsepower and moving at very slow speeds.
The trouble is that the hydrostatic unit is not very forgiving of poor care and abuse. It sounds like this one has had both. The cost to repair it correctly very well could be more than it is worth. You can buy pretty good gear drive models of the IH 1086 for around what this Hydro could cost to repair.
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