Thanks again Dave.
So I almost destroyed that beautifully rebuilt PTO again. Am I not understanding the adjustment directions in the manual? Push the lever forward, adjust until the brass button is 1/64th away from the PTO thrust button in "engaged" position.
I did that again and it immediately jammed up, marring the inside of that triangle spring just like the old one because it was rubbing on the output shaft. I did check it before starting it up and it seemed to engage disengage fine but I guess things work differently at 3600rpm. Pulled it to check, the bearing is definitely flush with the shaft and so was the previous bearing. Adjusted it like cadzag72 mentioned, adjusting the disengagement by slowly bringing it in until it frees up. Worked like a charm and went ahead and threw snow for 2 hours. I'm pretty sure this is how the previous owner adjusted it as well and how I ran it the past year cutting grass until a month ago when I thought "hey let me adjust this thing to manual spec" and destroyed the PTO triangle spring thing.