yes the muffler gets very hot... I really believe its a function of the thinner steel used to make it. Did you put the blade on or was it already on it? if you put it on are you sure you put it on correctly. If it was already there, how tall was the grass? what height was the deck set at. What engine speed? Engine speed should have been at max to allow maximum blade speed. Trying to cut a too slow an engine speed might produce the result you had. The deck used on the mower should have been similiar to my deck on my old 33 inch yard cruiser. And yes it was painted red as well. And no they are not razor sharp. I never had any issues with cut quality on that mower.