Small Engines (Lawn Mowers, etc.): magnets in flywheel, tecumseh engine, troybilt

Question
I have an older TroyBilt rototiller.  It suddenly stopped while I was rototilling.  After checking, I found that it didn't have any spark, so I pulled the flywheel off to check to see if there was any kind of a short, etc..  However, when I pulled the flywheel off, I found 2 small magnets attached to the inside of the flywheel; I also noticed that each of the magnets had a small chip, with one being larger than the other.  My questions are:

         Does either magnet having a chip impact the electrical field that it generates?

         Are the magnets supposed to attach solely by magnetism, or are they secured some other way (e.g. "glue").



           Thank you for your attention to this question.

Answer
A small chip should not have much impact.  The magnets are glued in place.

Do you have points and a condensor.

From what you described I'm guessing you have a Tecumseh engine.  
Correct?

Manual:

http://www.cpdonline.com/692509.pdf

Let me know if this helps.
Eric