Rustycat, I believe you regarding not having a ball bearing; my comment above was intended for Rivets, only because he is the one who stated that the engine had a ball bearing, and I want to assure everyone that I mean no disrespect to any and all that forward me information regarding this engine . I did look at the pictoral parts diagram for my engine but got a bit confused when the diagram did show a ball bearing (#23), but the parts list did not show that p/n (# 23), (see my 3 pictures above). Your answer re: oil for the 2 cycle engins makes sense as well since there is no oil sump to lubricate ball bearings. Finally, I also believe you when you state that my oil leak is coming from the crankcase breather area. Is there an easy solution for preventing the oil from leaking out from that breather when servicing the area underneath, like when working on the friction disc? My guess is to simply plug the end of the tube where it connects to the cover. Thank you for your input, it is appreciated.