Seems you and I have the same problem with the same Craftsman model.
When I checked with Sears parts, they wanted $180 for a complete transmission assy.
www.sears3.com.
So, I took the trans. assy. off, split the case, and found that the gear on the tine shaft was stripped. Bits of metal in the grease and housing. So, now I know that the engine and drive are OK, but that gear needs to be replaced. That's as far as I got today (5/19). I hope to find a way to make this a relatively easy fix, but don't know where/how yet. If you have any answers, let me know..I'll do the same.
shugh4@msn.com
Hugh Studebaker, May 2007