Riddle for you

As long as it looks dead square from the top the key is fine.
If it backfied with fuel down the plug hole then the valves are your problem
 
As long as it looks dead square from the top the key is fine.
If it backfied with fuel down the plug hole then the valves are your problem
Out of curiosity and for future reference, how do you know it's the valves? Are they difficult to replace?
 
Sorry, it's been a couple of days since I've been able to look at it again. When I put gas down the plug hole it backfires. Full number is 42E707-2631-E1. Would the flywheel key be sheared from top to bottom? I can view it from the top if I remove the large nut. It is square. But, obviously, I can't see the bottom of the key.

A sheared key will be even with either the flywheel keyway or the crankshaft keyway. A good key will be cross into the crankshaft keyway as well as the flywheel keyway.

Note to add: Sorry Bert. I posted this before I seen you're last post on this. Didn't mean to step on your toes.
 
If you can see it from the top it is the same at the bottom Another poster asked if you had good compression just reading your post about hearing the valves open and close Locate a compression tester and see how much compression you have I have seen a small enging run with 60psi so you should have AT LEAST that much
 
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