I got the engine completely tore down and cleaned. There were some chunks of metal floating around and places where the gears were scraping against the engine case. Found some makeshift parts that were questionable from the previous rebuild, so I am guessing that might have been causing some of the problems. Also as expected, the corks in the clutch were completely dry. Soaked those in oil overnight and got the clutch rebuilt. Now to put it all back together and get the parts off of the basement floor.