I've rebuilt 5 Kohler engines using the rebuild kits I bought off of Ebay. They are a mix of Stens hardware and Kohler gaskets. The oldest one has close to 9 years on its overhaul (Cub 1450) and has had a lot of hours - still runs like new.
A 127 should have the steel governor gears so I wouldn't worry about them - if it were newer and had the plastic gears I'd replace them as part of the rebuild.
The K301 kits are cheap - especially compared to the pricing of an all Kohler kit (same parts different boxes?).
With $40-$60 worth of machine shop work you can have a brand new 40 year old engine for less than $160. The key to making an old K series last is keep enough oil in it and keeping it somewhat clean.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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