OutdoorKing Repair Forum Forums Repairs and Maintenance Questions on Engines Questions On Victa Two Stroke Engines power torque issues

I have a power torque I brought not running. So I did carby an all that. When tryin to get it to fire up it would like make a back firing noise an puff smoke out of the decompressor so I changed that an same thing. So I checked the starter o ring an well there wasnt one the only kinda o ring in there was peices of it in the crank case. But also I come across this grey sludge




Would this be water that has gotten in?
Cause I replaced the starter o ring an put it all back together an no go. So at this stage im stumped