Turns out it was an EASY fix... Just the key on the flywheel. This put the timing off, so it ran horribly until it finally slipped to far to run at all. Wasn't sure where this was going to be located but you folks helped out greatly!
Once I replaced the key for $2.00 (bought the last one they had!) the mower is running like a top again. No other damage.
....now to replace the wobbly 8" "nylon sleeve" wheels with something a bit sturdier to make pushing it easier!