Doesn't look to me like that break in the milk stool is in a place which would cause the transmission to bind. Maybe running it with the break has caused some other breaks that you haven't noticed which is causing the binding, (I would be especially looking at the spot welds at the plate just above the brake between the legs, any of those spot welds breaking would cause a bind).
As far as the spatter goes, that is very minimal and maybe just from grease splatter from the helix and pulley and from maybe brake pad material, (It doesn't look like the splatter you would get with a badly compromised/leaking seal).
I've done this job without any of those special tools. You already have the agitator off, getting the agitator drive bell off won't be that difficult if you have a gear puller and you may find that it slides right off. As far as replacing the hub and seal kit, I used a 1 1/2" and a 2" PVC pipe to re-seat the new drive bell seal. I remove the hub nut using an old monkey wrench, (like a crescent wrench but has long straight jaws 90 degrees to the handle and is built really heavy and can take a whacking with a sledge hammer), and the gear puller to pull the hub. Removing the hub can be the most difficult part.
None of the bearings are pressed on, the new milk stool comes with a new lower bearing already installed, (I've never seen one of the lower bearings go bad). The upper bearing that goes bad when the seal leaks bolts to the outer tub with three bolts in the mounting flange that comes pre-assembled with the bearing.
You can change the milk stool without removing the inner basket/hub/transmission. Remove the motor to make it lighter and easier to handle, remove the springs and get the complete wash assembly out of the cabinet and turn upside down. After removing the drive pulley and brake assembly and the six bolts holding the milk stool to the outer tub the milk stool should slide right off. Once you have the milk stool off you should be able to turn the transmission freely if the bearing isn't locked up and the milk stool was causing the bind.
Did you watch to make sure the brake was actually opening/releasing when you turned the pulley in the spin direction?
Are you sure there's nothing stuck between the spin basket and the outer tub? You already have the agitator out, it only takes six more bolts to be removed to pull the spin basket out after you have removed the top tub cover.
Edited by Budget Appliance Repair, 27 July 2012 - 07:21 AM.