Hello Bucko,
I guess from reading your post you need to make a decision on what you really want to do. Yes the bed knife is totally shickered and will require replacement and a regrind along with the reel as well.
Your drivetrain looks perfect but totally unlubricated and this must be rectified urgently, or have you degreased it recently ?
Your engine date is correct and I'd say it's the original power plant on that chassis. It will more than likely be either a 2 Hp or 2.25 Hp unit.
Like I've said, you have to make a call on what end result you want, only then can I advise you of what to do.
Cheers,
BB.
