My quick answer is to stay away from craftsman - very far away. I have an LT1000 also. I only wish I could actually use it. In fact it won't even crank. The starter has never been able to turn the motor even when it was brand new. My parents bought it and fought with a year before cursing me with it. I want to just push it off a cliff and get rid of it.
When I could get it running, I had similar problems with the blades. I had to just keep engaging and disengaging until it worked. I have no idea what caused it to do that. All the belts seemed to be tight and in good condition.
I don't know what kind of mower to buy, maybe John Deere. I definitely know I will never spend one penny to buy anything with the craftsman name on it.
Russell, April 2008