Lifting with the bucket and lifting with forks is two entirely different scenarios.
Before you continue reading... I highly recommend reading this:
Powered Industrial Trucks eTool: Operating the Forklift - Load Handling: Load Composition
And remember... your tractor is not a Yale forklift.
Lifting dirt/stone with a bucket is more or less forgiving because you are putting the load closer to the center of gravity to the machine. Pallet forks work entirely different. You are putting the weight further out from you, so your counterbalance needs to be:
1. Solid -- I would never use a water container as a ballast. You are just waiting for an accident.
2. Proper weight -- If you are planning on picking up 800 lbs up front on pallet forks, I would have no less than 1000 lbs on the rear to keep you from wobbling forwards and backwards.
3. Tire pressure should be where your manual recommends. 30 PSI sounds about good.
If you use pallet forks, keep in mind your loading on the forks. Try to figure out where the heaviest point is on the pallet (basically which side of the pallet is you should put closer to the center of gravity of the machine).
Lifting heavy pallets on a tractor requires practice, especially if you nearing in on your max capacities. Know your limits and the limits of your machine. Keep things as low as possible during travel and make sure there are no pedestrians and children around.
One thing I learned during my OSHA forklift session was how many ways you can get hurt using a forklift type machine. Please be careful!
According to the specs your LA524 loader will lift:
Lift to full height (at pin): 1,131 lbs
Lift to full height (at 20 inches): 855 lbs
Lift to 5 feet (at pin): 1,490 lbs
Lift to 5 feet (at 20 inches): 1,182 lbs
So with that in mind, you need to do some maths.
I am assuming you have the quick connect forks that weigh in the neighborhood of 250 lbs (with chains and appropriate accessories included).
So if your bucket can lift 1,182 lbs at 20" at 5 feet, at the middle of your forks, you are looking at about (using: 20/28*1182) 844 lbs at 5 feet give or take. If your load is toward the end of the forks: 20/36*1182=656 lbs.
As you can see, the further your you get, the less you can lift. But the forces on your tractor are the SAME and worse when travelling.
Hopefully this helps and good luck.