I received the replacement brake pads today. To be honest, they are actually a little bit shorter than the old pads, but they do fit, as their width is the correct size. I actually found that the old brake pads were two different lengths - the length of the pad that sits in the transmission case is different than the pad that sits in the brake caliper. I also noticed that the brake pad that sits in the transmission case was more worn. So anyway, I installed the new, shorter replacement pads and everything seems to be good. The caliper pins were actually in very good condition without any dirt or rust to bind them up. I was actually surprised how clean everything was for being 27 years old.
I can't exactly tell where the jamb nuts were located on the shaft for the spring, as there is no difference in coloration of the threads. So, I backed them off, but the next time I cut I may have to adjust them.
I also have adjusted nut #50 in the past that tensions the cam for the brake pins before. However this time it seems to be more effective with the new brake pads. This is actually a very interesting system that relies entirely upon friction. Very simple, though.
And lastly, the shaft that protrudes from the transmission case is actually not splined on my model. It has a key and key way, very similar to the rear axle shafts. The rotor in turn has a slot for the key to fit in to.
So, I do plan on cutting tomorrow so may have some more adjustments to do. I will try to fine tune it so that there is not a harsh engagement between clutch and brake. As you mention it should be relatively smooth and not jerky. My transition was jerky before, unless I was very easy on letting off of the pedal. Sometimes it makes me wish I had a hydraulic transmission, but then again this is my first lawn tractor ever, and at that, a relatively inexpensive $200, 27 year old lawn tractor.