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The blades on my craftsman 917.258534 won't turn?

I start my mower and engage the blade clutch and nothing happens. It is much harder to move the lever and when I do there is no change. The motor doesn't lug, the belt doesn't squeal or smoke.

I can't figure out what is not working or even what the lever is suppose to engage. I have the owners manual and still don't see what I need to check. The belt looks good and I can turn the blades and all pulleys spin. What should I do?
Bill, June 2011
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