Mathew, I don't know what you mean by engages half way down but that sounds like the way it is supposed to work.
Look at it like this, you are working with mechanical linkage that moves mechanical bands that move to stop your pto or allow it to turn. If that linkage is sloppy, worn bolts, worn slots, worn holes, loose anything, then the bands are not going to open and close as they should causing dragging or slipping. Even correct adjustment will not overcome lots of slop. My 300U slipped for years in tall grass until I took the time to understand how it worked and adjust it properly. Which in fact is simple and easy.
Use the IHParts pictorials website, the posts I mentioned and hopefully an IT Manual then take your time fixing the slop and understanding the adjusting instructions.
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