There is a simple microswitch on the PTO lever that opens when the lever is pulled forward (engaged). When the switch is open the starter will not crank. This has no bering on the operation of the PTO in any other way.
If the PTO turns continously... it's more than likely shucked the lining off the PTO brake shoe that rides against the clutch drum. You can stop the PTO with a bare hand IF that's all that's wrong. To be safe... try stopping it with a 2x4 first. If it won't stop you've either got a problem with the control valve or warped clutch plates. If it's a valve problem the PTO should freewheel when the engine is off. If the plates are warped you probably can't turn the PTO without turning the engine...
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