i have thought about this myself
my eventual idea was to have it belt drive (i guess this depends on how hard you are coint to use it, if you think chains will do belts may also)
you have a vertical shaft engine with a pulley on the bottom. with pulleys in the piviot of the tractor belt go to front and rear gearbox (the ones like they have on lawn tractors with the pulley at the top). one gerbox for front wheels and one for rear (havent planned how the gear change mechanism joins up yet). im witning to get another gearbox the same to do this.
i dont know what scale you plan to do this on (HP?)
i think overall you idea would work, but the losses on the joint in the middle when turning would be great. hydraulics would in my opinion be best to have for a larger machine (like a power trac)