Hi Mechanic Mark,
I checked out the belt and it's in good condition. The problem seems to be in the transmission. When I let out the clutch both wheels try to move, but all they do vibrate while a loud clack, clack noise comes from the rear end .[/QUOTE
Contact Sears Parts Direct by email or phone with your model number and tell them you need price on Peerless transaxle 930057a, shipping should be free to your door. Are you up to replacing transaxle yourself? Second option is to remove transaxle, disassemble, inspect for worn out parts, order new parts and reassemble following directions including new lube and reinstalling.
http://www.smallenginesuppliers.com...eh/Tecumseh_Transaxle_Service_Information.pdf