Success.
Took the valve cover off, EX rocker was extrememly loose...rocker was barely hanging on the push rod. My error I assume.
Spark plug black, fouled out. The EX valve ouut of whack and the fouled plug caused the engine to basically lose power and die.
I decided to take closuure plate off to see if I had bad cam gears or if I could see something else wrong. Everything looked good. No metal in the oil, nice and clean, no gas in oil, etc...I did find a wire to the ignition coil that needed some attention.
Put it all back together according to Kohlers service manual and it runs, sounds, and mows great...better than my JD L100, which is the same size as LTX1040.
Thanks for the feedback.
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