Small Engine Problems? Ask an Engine Mechanic for Answers ASAP
Hello and welcome to JA..
The motor you probably have is a G1 motor (i'm guessing) the problem you're having is consistant with being bad crank seals.. both need replaced.. 1 on flywheel side and 1 on clutch side... these seals are a very common problem as when they are leaking and you don't have the required vacuum to operate the motor.. as the lower end of the engine is what controls the fuel and oil flow.. Have those replaced and i'd bet that clears the problem..
Seals are around $10.00 each.. but i do recommend having a certified mechanic doing this as there is a special tool for removing the clutch.. labor would only be about $50.00 if you take the motor out and deliver to the mechanic... and very simple to remove motor... let me know if i can be of further assistance.. Thanks, Joe