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I'd say this might happen if the engine is being broken in and is not up to break in temps, between 180 and 250. Piston sleeve too tight, hasnt expanded enough to allow for the piston to go fully up! Therefore the conrod gets launched into the bottom of casing.

Where did you find a new engine for that much?

No power sluggish Shuts off when igniter removed Lets not assume the worst right away. I say its running way too rich. Try leaning the HSN and see how you go! Good luck!