Peerless Tecumseh Transmission Manual

Peerless Tecumseh Transmission Transaxle #205-026c
Looking at Toro wpm transmissions, the old single speeds- like through the side discharge era, were 90W gear oil. A lot of those got OO when they started to seep. The other trans called for #2 lithium including the three speeds and single speeds.
It seems to me we used moly lube in the three speeds when they got water'd up and gunky. Been a few years since. In my Toro XL tractor manual they say that Benonite was used in the Peerless t/a through 95 and 96 and newer were 80W90 gear oil. But you take a newer MST that uses gear oil, they certainly have seals. Let's use dirt for a lube and no seals, what a novel concept. If you are up for this, plan on about 5 hours to RnR and clean this thing up they way it needs to be to change the lube. BTW your calls for 36 oz grease.
Peerless Tecumseh Transmission Parts
This transmission on the Simplicity in question made a grinding chatter when the clutch was left out. It was immediately shut down and towed to the shed. I had someone slowly let out the clutch and saw the pulley atop the tranny move upward about 1/4'. I was able to move the pulley up and down by 1/4', but there was no wobble in the shaft. Looking at the IPL, I'm thinking the beveled gear is ruined and if there were any shims to keep the pulley from moving upward, they are gone too. The pulley is tight on the shaft. So, I was wondering what type of lube to put back into the trans, if I decide to fix it.