Is there a way to operiate the hydro to raise and lower with out the PTO spinning

get out your volt meter and start tracing power for lights and pto

If hydros are in bypass (bypass rods pulled rearward and locked) the drive wheels are free to turn and you should be able to move the machine by pushing manually when brake is OFF.

If hydros are engaged (bypass rods unlocked and forward) the wheels will not turn when you attempt to move by hand.

See operators guide http://www.husqvarna.com/ddoc/HUSO/HUSO2012_NAen/HUSO2012_NAen_RZ4623_115457827%20Rev%20B.pdf

If you confirm you can manually move the mower when in bypass you can't move machine when hydros engaged, then likely an issue with the pump drive belt. This belt wraps around both hydro pumps, upper engine pulley (above the electric PTO clutch), and a tensioner pulley.

If both hydro pump cooling fans are spinning when engine is running then the pump drive belt is in place and the problem is elsewhere.

This actually sounds like the top pulley on the transmission may be loose and the center hole worn out.

Depending on the actual sound though it may be a bad transmission - sorry. I suggest having a dealer mechanic inspect it.

the pto is bad

a short on the hydro wire have to find chase the wires from pto back if you dont find it take it in because if you dont you will burn up the stater

hydro transmission, hydro PTO? check hydro fluid

check for hydraulic oil level in the pto pump

wires to the pto solenoid incorrect and not wired properly through the switch
did you put the correct shims under the flange of the pto mount as it it is incorrect distance , the pto teeth will say jammed in the transmission gear teeth
suggest that you take it to a shop that fits pto and have the installation checked before you damage the transmission

Before you do anything else check to make sure the blades are engaged on thier seat ( the star) and the blade bolts are tight.
If you have an electric PTO this does not apply to you.
After confirming that your blades are tight check the operation of the PTO cable and the pivot bracket by lowering the deck all the way. Laying on the ground on the discharge side of the mower you will be able to look at the components and see and touch whats not moving freely as you engage and disengage the PTO lever. Look for a stiff PTO cable, stiff pivot bracket, missing return spring, broken spindle brackets and broken deck bracket welds.
Of course you should never work on any mechanical device while it is running.

Check your hydro preasures,pump could be going out,also could be in your relieve valve which will be cheaper,hope that is your problem because of the cost,Sound like you know alot about it, and trust you have a high mechancal ability,I have a hunch it could be in you valve, hope this helps,