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My brother re-built the engine on my Honda hrc216 commercial.
As he was putting it back together, the crankshaft was turning smoothly by hand.
When he assembled the clutch stuff for the hydrostatic(?) blade stuff, it became extremely difficult to pull the rope and crank.
Then, once started, we found that the blade continues to spin, and the lever does not disengage it.
I figure fix one problem, it'll fix both. No, I don't know what I'm talking about - any suggestions?

Sounds like you have an assembly error, disassemble and try again.