Small Engines (Lawn Mowers, etc.): Poulan riding mower transaxle Model #27147, searspartsdirect, needle bearings

Question
Poulan riding mower Model # 27147. The mower starts fine, blades and all work... It doesn't want to drive; it's very jerky/rough when it tries to move. The hole that the Shaft, iterm [part 170983 on http://www.searspartsdirect.com] goes through seems to be "rounded out" (worn larger than it should be). Apparently causing the shaft to wobble, which in turn is causing the gears not to work properly???... Basically the mower runs fine, but will not move/drive. Is there bearings, or something else that should be in that hole... Is it something that we can fix... Or would we need to replace the upper housing [part 170981 on http://www.searspartsdirect.com]??? Thank you for any help. Also, when we cracked open the transaxle case, there was a small amount of water in with the grease; so would we need to change the grease also? Thank you so much for any help you can provide!

Answer
Sorry it has taken so long to respond.  A virus infected my computer and it took a couple of days to repair.

There are two needle bearings in the upper transmission casing for the shaft, interm.  These bearings do wear out once in a while.

As for changing the grease, I would recommend replacing it since there might be metal parts from the bearings and/or stripped/broke gear teeth in the grease.

Since the bearings are bad you need to carefully inspect the Bevel pinion, Number:170986, and the Gear, bevel, 36t, Number:170988, to make sure they are not worn.  Does the shaft show any signs of wear?  It should be the same diameter from top to bottom and you should not be able to feel any grooves where it rides in the bearings.


Also, the shift keys, Shift key kit, Number:138236, are prone to wearing on these transaxles.   
How old is the mower and how much are you willing to spend on it?  You can easily spend a couple of hundred dollars on the transaxle parts.  

Here is a link for Peerless transaxle repair manual:

http://www.cpdonline.com/691218.pdf

Google "Peerless Motion Drive"  if the link does not work.

While the manual is for Peerless, the Foote transaxle (yours) is very similar so the manual is a very good reference.

Let me know if this helps.
Eric