Hey, nice to meet you, that was a great video to give us all an indication of what you're trying to do.
I agree with what I'm sure you're thinking about the undercarriage; it has some serious issues that will be costly. I feel for the seller, he must have used it and has good memories--but he won't be writing the checks for fixing all that. Sure could use some searching for replacements. A lot of respondents will be recoiling at the appearance of that tensioner spring.
Personally I would have never have allowed contaminated fuel to get into any lines past the first filter, I assume intended as the water separator. My recollection was that I saw a shut-off valve just outside of the fuel line coming out of the tank; I'd have shut that off first before removing that primary filter, and then not put the housing back on without a filter in it. Not a criticism, just me.
The winch, which was my contribution as I'm running a Hyster of that vintage--and that works just fine--on a 1965 D4D, is that it runs off the PTO which is engaged at any time the transmission clutch is engaged (ie, not a 'live PTO'). The second lever on that D7 might be a forward-neutral-reverse (payout-freespool-haulin) lever combining what takes 2 levers on mine.
If you need, let me know and I'll delve into my manual top see where the other end of the broken bouden cable ends up inside the winch.