The spring in your picture is a old car drum brake spring, throw it away. Picture 2: at the far left end of the sliding part there is supposed to be a small spring connected to the end of a cotter pin. This is a factor spring to pull the pto all the way forward and stop it from spinning when disengaged. Also the part that you rock with your foot should have a decal that shows the proper placement of the 2 wire guides. The wire guides should be 1/8" away from the belt when the pto is engaged. The worn belt is probably from the wire guides rubbing on the belt.
Looking a picture 2 again, I see the wire guide for the lower part of thee belt is missing it should be under the 3/4" nut that holds the adjustable pulley in the slotted hole. Ya may be able to make the wire guide from #9 wire.
Picture 2 is not my mower I should have clairified. It's an Internet photo. I just wanted to make a reference to the belt I was having trouble with. Belt behind the spring in picture 2 is the best I am having trouble with. The pulley on that belt seems to wiggle a ton, "hence the chewed up belt". I thought it would have something to do with that spring being disconnected in picture 1:
I agree with Grant on the spring in #1. My 65 had the same home made mod. Replaced Dip stick with a new one not worn out and spring was no longer needed. The inner belt?? are you referring to the "primary drive belt" That is the one from the engine drive sheave to the variator.
As long as the variator and the drive sheave are turning you should be able to replace it without that happening. I had one like that not sure what ever caused it. You have no idea how old some of these belts are. Unless of course you just changed it and it happened. The recommendation is to go with John Deere belts for both the primary and secondary belts for proper adjustments.
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