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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Today's Featured Article - The 8N and the Fox - by Zane Sherman. Dec. 13 1998, Renfroe, Alabama. Last niht I dreamed about the day that I plowed the field of about 10 acres over on what Jimmy and Dandy called the Ledbetter field. I was driving the 1948 8N Ford tractor that Jimmy bought in 48 new This was prebably in about 1951 and maybe even befor the house was built. This would have made me to be about16 years old and I drove the tractor for nothing and would have paid to drive it if I had had any money which I didn't, but neit
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