[Yosemite Sam]

Everything you need to know about setting up and adjusting the pto will be in the service manual (download it from the tech section).

The bearing needs to be flush with the end of the shaft. If the new bearing comes with a snap ring in the bore, take it out and throw it away, it isn't used in this application.

When you go to put this back together, slop a little anti-seize on the engine shaft, inside of the boar of the pto and some on the set screws. You never know when you may have to take it back off again, this will also make it easier for the next guy who has to rebuild it.