Small Engines (Lawn Mowers, etc.): lawn mower engine, worn gears, nasty smell

Question
Thanks, Marc
I took another look at it last night. I am 99% sure it's not the engine now, I believe its the transmision. As i tested it, and it runs almost odor free (except engine smell) until i put the clutch in then i get that blue smoke and nasty smell.
trying to determine if it is the gears in the transmission or if the pulley wheel is sticking and burning up the drive belt as it is showing wear, tear and cuts, but to me it does not smell like burning rubber (belt), so i'm sure it's gears buring up?. is there any way to test this besides dismantling the transmission to see if there is any worn gears. does the transmission need special grease/fluids for the gears if replacing and if so what?. is cost effective to do this Thanks, Andy  

Answer
It's unlikely you would get an odor from inside the transmission....gears don't burn up....they generally fail with little or no warning.  I'd look for a bad idler bearing or a belt issue before you proceed with any internal transmission investigation.  Hope this helps.