ALLEN - If the sinking steering wheel came on suddenly, I'd suspect thrust bearing problems like I described, the plastic ball bearing separators breaking, the thrust races failing, etc. The thrust races are stamped hardened steel "Conical washers" which allow the ball bearings to run on them as opposed to the diecast adjusting nut on the bottom and on an inner shoulder on the top of the gearbox casting. Once the races fail the ball bearings run directly on the diecasting, which will only last a short time because of the pressure from the ball bearings, the diecasting is too soft and wears quickly making the casting unusable with out a LOT of work. And as Charlie said, they're still available but EXPENSIVE.
I'd plan on removing the whole steering column and gearbox sooner as opposed to later. Steering wheel removal is the hardest part for most people, there's a FAQ on that, then disconnect the tierod from the steering arm on the gearbox, then take the two cap screws out and it should drop right down and out of the tractor. You may need to raise the frt of the tractor up on a floor jack or jack stands to get it completely out. Make sure the tractor is secure, you'll probably need to be under it while it's raised. Mower deck removal is a Must!
The adjusting stud and lock nut on the steering arm on the side of the gearbox, about 2 inches away from the pivot bolt for the steering lever just adjusts the depth of the cam follower stud which controls the free play in the gearbox, the ability to turn the steering wheel left & right without moving the frt wheels. The big flat adjusting nut on the bottom, about 2" in diameter with one full width slot and several, 6-8 shorter slots, is the adjusting nut that controls the free play of the steering worm and shaft. There is a gasket or seal on the steering arm to gearbox surface. It's a foam rubber cushion that's "D" shaped, and a thin steel stamping that holds the foam cushion and the sides extend into the "D" shaped hole in the gearbox to secure it while the steering arm moves. Grease leaking from that seal is normal.
All the disassembly, assembly, and adjusting is best done with the gearbox horizontal in a vice. I've never tried it while the gearbox was still on the tractor, but it wouldn't be fun if it was even possible.
I've had gearboxes that were trashed, some badly worn, but I finally found one this spring that acted trashed and was in amazingly good shape, on the old 70 I refurbished. It was a replacement gear box from around 1970. The "Old one" split in half from the bottom corner of the "D" shaped hole around the back and other side when somebody got the left frt wheel of the tractor wedged under a 1000 gallon LP tank while mowing. Dad tied it up and hung it in a PROMINENT spot in the shop as a constant reminder that mowing a couple blades of crab grass wasn't worth the $100+ the new gearbox cost at the time. The seals, balls beaings, conical races, plastic separators were all in good shape in the new gearbox, but the grease looked terrible, I cleaned it up good, repacked it with grease, adjusted it carefully, installed the NICE 605 thrust bearing I bought for another gearbox but couldn't use, installed a good 3/4" wheel bearing in the top of the steering tube to locate the steering shaft and the 48 yr old tractor steers better than new.