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Problem with Peerless / Tecumseh 6-speed Transaxle?

I have Craftsman Model 917.270732 / SN:063000D010923 Lawn tractor. It came equiped with a Peerless / Tecumseh Model MST-205-545C / SN:0173B-0751 6-speed Transaxle. The tractor does fine in first, fourth, fifth, and sixth gear. However, in second and third gear the tractor jumps and then slows back down in somewhat of a predictable jumping pattern.

Belt was replaced with a Craftsman made belt and although the tractor has some age on it, the pulleys and idlers seem in good shape. They are not bent or warped. I have looked into th transmission and did not find any chipped gears or visually identifiable faults with the shafts and other components.
Anyone have any suggestions? I cannot afford a new transmission or a new lawn tractor.
Rex, June 2010
Can i replace the 205-545c with other compatible transaxle?

Angel, May 2011
Sounds like a selector fork issue, you can adjust the detect pressure if it is slipping out of gear, there will be two allen headed grub screws externally abobe the selector quadrant

Husqvarna man, June 2010
link Click here to see other fixes for Craftsman.