A cheap voltmeter will really help you troubleshoot this machine. This is a fairly simple circuit to start the tractor. Set your volt meter to volts dc. Put the black volt meter lead on tractor ground or the - battery terminal and look for +12 volts dc using the red volt meter lead while trying to start the tractor with key switch turned to start. The black wire to the key start switch at terminal B supplies +12 vdc for starting. With key switch turned to start the red wire from the key switch at terminal S supplies +12vdc to the pto switch at terminal C. If the pto switch is turned off(pulled down) +12vdc passes through normally closed contacts(terminal C and D, both are red wires} at the pto switch and goes to the brake pedal switch. If the brake pedal is depressed, the switch contacts close and +12 vdc goes to the starter solenoid on another red wire .This wire is the small wire on the solenoid, +12vdc here should cause the contacts in the solenoid to close(if solenoid is grounded) and send voltage and high current to the starter on the heavy cable. I suspect since you are having problems starting tractor and using the pto switch that your problem is at the pto switch or pto connections. Mine were really corroded and a couple of them needed replaced but the culprit could be any of the switches/components or connections. Good Luck!
John