The problem turned out to be the wrong pressure plate. When I took the old pressure in to be rebuilt, the shop was not able to rebuild my old unit so they ordered a rebuilt from another shop. When it came in a week later of course my old pressure plate was already in a pile somewhere else so no side-by-side comparison was done.
This model tractor uses two different transmissions, a hi-lo-reverse and a constant mesh transmission which is what I have. The constant mesh transmission has an extra shaft which is run off the pressure plate with a set of splines. The pressure plate I got is smooth inside and fit just over the splines on the shaft. That is why I was getting a grinding noise and why the pump wasn't working. Actually it probably was turning just a little which explains a dribble of oil thru the lines.
So now I have the pleasure of breaking the tractor apart again and installing the right part. Thanks to each of you for your replies and interest.
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Today's Featured Article - Talk of the Town: The Saga of Grandpa's Tractor - by The following saga is from the Tractor Talk Discussion Forum. Someone. The saga starts with the following message: Hey guys I have a decision to make. I know what you all will probably suggest and it will probably agree with me way down inside, but here it is. I have a picture blown up and framed in my "tractor room" of a Farmall M. It was my Grandpa's tractor, of which whom I never got to meet. He froze to death getting this tractor out of the barn to pull a truck out of the ditch before I was born. Anyway my dad and aunt had to sell it at the auction,
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