Ford 801 Diesel engine clunks

my 172 cid the diesel can be turned over just about 360 degrees and stops with a clunk.It was hydro-locked when I got it home. (3 gallons of diesel in the crank case.
I made sure the pistons aren't hitting the valves and it isn't hydro-locked.
The 5 speed trans is in neutral, the pto is disengaged. It sounds like the clunk is happening at the front of the transmission. i took the cover off the trans and the oil pan off and can't see anything wrong.
The tractor was supposed to have run before being stored in a barn for 3 years.
 
Is it a gear drive, or other transmission. If the clutch was blocked down would it clunk? A chunk of clutch Or? could be loose hitting housing. Jim
 
Tell us more about the hydro locked. If it was hydro locked when you got it and now is not what did you do to unlock it. also without looking in each cylinder how did you determine the pistons are not hitting the valves. Just draining the oil pan may not have drained out the cylinders. The reason I asked for more about the hydrolock. While I had the pan off I would have checked the crank and bearings for wear and scratches in case one was rough or bearing worn out. Have you checked to see if all the valves are free moving so they don't stick. I know you said not hitting piston no info on how you checked just we can't see these things in our cystal ball and we are not there.
 
might have an injecter busted. some systems will let fuel run through if injecter
breaks .
 
Any foreign material pinched between the piston
and the cylinder head would allow it to rotate that
far. Chunk of carbon dropping out of the valve
pocket when the exhaust valve opens, for example.
 
Could it have dropped a valve or valve seat into a cylinder? Could it have bent a rod or broken a piston when it hydro-locked? Mouse nest? Pull the cylinder head, the oil pan and the clutch inspection cover to see what is going on.
 
It's a 5 speed transmission.
i opened the valves long enough to drain the cylinders, and drained the crankcase.
With the crank up against the stop, I can move all the valves.
I removed the pan, and the crank looks good.
Something on top of a piston sound possible. The stop seems to be as the first and last piston are at top dead center.
 

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