The PTO clutch cable runs from the right hand side lever to the clutch itself. Look at the cable and find the screw adjuster. Loosen the locknut and screw the adjuster in or out as needed to get a .020" gap between the clutch plate and disc. Retighten the locknut. This should allow the clutch to completely disengage without dragging. If you try this and still have any problems, just let me know and I will opt out to allow another expert to help you.