Could be the "permanently lubricated" needle bearing in the generator head has seized and spun. When it fails it lets the armature rub on the field poles causing drag/sparking.
To inspect, remove the thru bolts holding the generator head together then carefully pull off the end bell (watch for the pair brushes that will pop free as the end bell comes off). The bearing is pressed into the plastic end bell. Unfortunately when it fails it usually destroys the end bell.
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Today's Featured Article - Talk of the Town: How to Remove a Broken Bolt - by Staff. Another neat discussion from the Tractor Talk Discussion Forum. The discussion started out with the following post: "I have an aluminum steering gear housing with a bolt broken off in it. The bolt is about a 3/8" x 1 1/2" bolt. I've already drilled the center of the bolt out with about 7/64" drill bit the entire length of the bolt. Only one end of the bolt is visible. I tried to use an easy out but it wasn't budging and I didn't want t
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