Well here we go, got the CH1000, 40hp Kohler up on the tear down table today. I looked over, everything seems to look ok, it turns over ok by hand. I can feel and hear compression, no noise or tight spots. Oil is down to 2 or 3 drops and black. Sparkplugs look great, nice chocolate brown.
I started taking it apart and found out that it must have come off of a saw mill, saw dust packed everywhere. From the condition of the bolt heads it was apart before. At this point I noticed that the rocker arms are tight on all valves but #2 exhaust, it has a little play in it. I have to check and see if this motor has hydraulic lifters. Piston tops look very clean looking through the plug hole.
Now while I was removing the plastic shrouds I found a piece the shroud broken and pushed out from the flywheel area. See pictures, I can not find any damage to the flywheel.
When I get a chance I will take more of the engine apart and post pic's.