Also, thanks for the replies and the information. I now have a plan. Where can I find a diagram of a Kubota PTO so at least I can show what part of the tractor I am concerned about. I think I know where this is heading. Someone from the dealer will have to drive out and witness the sound himself. Fortunately here that only costs about $10.
I've read more about this and one guy described the L2800 with a transmission driven PTO with overriding cams which sounds like my L4508. The PTO is engaged by a lever selecting either 540 or 720 rpm. When I release the clutch the PTO engages at the same time forward motion begins and everything stops when the clutch is depressed.
I suspect the PTO Overriding PTO" CAMs are worn. I started using the PTO for the first time when I trenched for irrigation and drainage around my house. My soil is sandy and clay mix but there are places where the clay is very hard, dry, and packed. To get a one-pass trench I revved the engine to 2000-2200 and in low gear and 540 RPM on the PTO I attempted to cut a trench 7" wide by 24" deep trench and sometimes in hard soil I first noticed the clacking sound. But I needed to get my work done so I pressed on. I suspect I was pushing my little 4508 too hard which caused excessive wear. Unfortunately, I still have some trenching to do and with the tropical climate here everything grows so fast I need the tiller for weed control. I guess a trip to the Kubota dealer is in order and I hope the cost isn't too much. Labor rates are certainly cheaper here. The average wage is about $500-$600 a month and that is from a good job. Retail jobs pay $300 a month. I hire farmworkers for digging etc around the house and pay between $12 and $15 a day and I am a BIG payor! Anyway, thanks for the advice. I'll report back when I know more.