I found the problem! Got a blown up engine from the local small engine shop and tore it down. The inside were completely destroyed, Rod broke, cam shaft bent, holes in two sides of the block. Interesting thing that I could not find anything that looked like a place for the part we found but then looking through the pieces of broken parts, I found a piece that matched the one we found from my brother's motor. I remembered reading somewhere that this type of engine had a compression release and after a little research found that was where the piece came from. It is not listed in the parts breakdown, nor is there a line item to purchase one, as it is a part of the Camshaft assembly. I am suspecting this is what caused the catastrophic destruction of the engine we got, because nothing was left on the camshaft. A picture of a camshaft shows a counter weight assembly that is around the camshaft and holds a valve open to release compression when the engine is cranking and disengages around 500 RPM when the engine starts running. I think the valve adjustment may have something to do with this problem. We have replaced two intake push rods on this engine and he said it had been hard to start. If your engine gets hard to start, you may want to take some steps to prevent a bigger problem. Not certain what we will find when we open up his engine, but hopefully a new camshaft, a set of rings and some gaskets will get him back in service with a easy starting engine that will last a few more summers.
Thanks for the input from everyone.
Thanks for the input from everyone.