Yes I removed all the nuts and bolts. The problem stems from the threaded U bolt used to hold the transaxle to the mower.
I heated and cooled the aluminum casing covering the bolts and even sprayed with Kroll oil. If it does not come loose over night with a little persuasion wicrow bar and 10 lb hammer inwilll be forced to remove the sides of the frame and cut the u bolt apart andfree up the transaxle.
Not surprised considering the age of the first 160 series. Yes someone that very good with cutting torch can create miracles. I have to cutoff the Peerless transaxle drive pulleys without damaging the input shaft or seal, just got to know what you are doing.
Let us know how that Kroil works. I have tried many penetrating oil and all have failed me but have yet to try the Kroil one. Getting any into the corrode area is the hard part; otherwords, no penetrating fluid can work if it can't soak thru the solid corrosion or dissolve it.
I have been experimenting here with various things. Some have worked and others have been complete failures just not enough data to tell what works on what. I do have one thing that removes the white corrosion and rust in carburetors but some carbs the results is the corrosion was what held them together at times.