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Machine was running fine started acting like it was running out of gas, then stalled, put gas in it, pulled the start cord to find it seized. Pulled the spark plug out-still seized, WD 40 down the cylinder-still seized. Removed the pulley cover, pulley (Crankshaft) turns approx. 3/4 then stops. What would you do next?

If I need to replace the engine the husqvarna number is 580426107 or 580426104 for around $600.00.
Any know of cost effective replacement?
 
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