Here's an update-
As it turns out the tranny is fine, the adapter for the sprocket to driven shaft broke/sheared. I managed to grind too much material off the end of the sprocket creating a very thin weld.I didn't weld the back side off the sprocket to the shaft so it simply sheared the thin weld and sounded like a stripped gear.I did split the tranny and it's perfect-so it appears that this type transmission is suitable for 50+/- HP. Since I have a mini-lathe now I made a new shaft with a matching tooth sprocket on the motor. I test drove it and it's working like it should.
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