I was within half an hour of finishing cutting grass Saturday afternoon when the tractor seemed to loose power and stalled. Did a quick restart after I disengaged the PTO and tried to engage the PTO again and the engine started to die again. Drove back to the shop and parked it for the night and did a quick check and the deck blades seemed to turn freely so I removed the PTO yoke from the PTO and found that the PTO had seized up at the rear needle bearing. This surprised me as I grease the PTO faithfully every time I use the tractor as I have had the ball bearing at the front fail because of lack of grease. I borrowed the PTO off my other 1050 yesterday and finished cutting the grass and today decided to pull the seized PTO apart and see how much damage I had done. As you can see by the pictures the rear needle bearing got very hot and seized to the shaft as well as the end of the PTO where the seal would press in is pretty much worn away. I should have been keeping a closer eye on this and will definitely do so in the future. I am assuming what happened is the snap ring on the PTO shaft inside broke (as I found it in about three pieces mixed in with what was left of the grease) and allowed the shaft to move ahead causing the pulley to wear the end of the PTO housing generating heat to the point where the grease boiled away and the needle bearing seized up. The first job was to slit the bearing cage with a die grinder using a worn 3" cut off wheel (it was closer to 2" which let me get in close to the bearing with the pulley where it is as it was welded to the shaft by a previous owner) and pry the cage apart with a large screwdriver and remove what was left of the needles which were melted into the PTO shaft.
Thought I would post this and the way I am using to repair it as it may help someone else in a similar situation.