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Have John Deere 27 hp twin V Z665 less than year old. Was cutting the grass yesterday and heard tapping starting in engine. before I could shut it down, I heard a loud metalic clank right after the engine backfired. Could this be a dropped valve? Engine seems to be locked up.

Could be a couple of things. Take it back to the dealer, as a one year old unit should be covered under you warranty. Did you check the oil?

Sounds more like a blown rod rather than a dropped valve.