Small Engines (Lawn Mowers, etc.): murray riding mower, wrist pin, engine component


Question
Hi Tom, I started my mdl 40507x8a  about 10-12 year old rider, tonight and it turned right over, but made an odd clunking sound,Like metal to metal,upon start up, comming from the 12.5 hp B&s engine, The noise cleared up,after 3-5 seconds, but after 30 seconds, started to smoke- (nothing was engaged, in neutral) So I tried it again, and same thing.I can see from underneath that the pulley on the end of the motor is spinning freely, although I cant see the other belt which I believe engages the rear trans.Its run great all summer. Any ideas?
thanks for any help or sources  to go to- My dealer a con artist so hes the last stop!

Answer
Ok I need some more info Andrew, when you say it was smoking while in neutral, was the engine itself smoking from the exhaust, or was it smoking from the underside? Were the blades engaged at the time?  If I'm following correctly it sounds as if the engine itself made the noise, if this is the case, and it was the engine itself smoking, I'd be leaning towards a internal engine component ( Connecting rod, wrist pin, connecting rod, exct...) ready to give way, and a rebuild in your future........Tom