Most older spindles are dripping grease out the bottom and are sloppy-loose from wear. That one is very dry. At this point I would try to clean off the rust on the exposed spindle (emery cloth), grease it up well and put it back together. Try to work the spindle back and forth without the tie rod connected and it should free up. Repeat on the other side. Hopefully the clunk was only a broken tie rod end (cheap to replace).
As others have mentioned, for safety put some substantial wooden cribbing under the axle to support the tractor, don't use cinder/cement blocks as they can crumble without warning.
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Today's Featured Article - Seeing an Old Friend - by Joe Evans. Dad had a concrete contracting business starting in 1960. One of his first pieces of equipment was a Ferguson TO-35 with a Davis loader. Dad replaced the TO-35 with a MF 202 Workbull, essentially an industrialized Ferguson 35 I am told. Dad bought the 202 new in 1962, and I recall quite clearly going to the dealer with him to sign for it.
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