take the head off. look at the cylinder walls. it MAY be locked up just from sitting so long.
most of the time, a broken connecting rod will not lock it up. also most of the time when the connecting rod breaks, especially on a flathead tecumseh, it will smack itself right through the side of the engine.
carbs sell on ebay for the tec 5hp for around $40-60 shipped. new. may not be tecumseh brand though but thats not much of a problem.
an exhaust pipe can be made from some steel tube.... if youre making a straight pipe, or else you can make a flange and use any muffler you want. i assume the exhaust port is threaded, that means you can find something that screws on too.
EDIT: oops, just realized you said carb "busted" off. what does this mean? pics?
here is to give you an idea of "worth rebuilding"
here is an H60 that is awaiting more money for me to rebuild. it had NO spark, NO carb at all, a totally rusted apart exhaust, and the flywheel shroud was rusted through on the bottom.
i havent given up on it...... here is what it will cost me to restore.
airplane paint remover $10
engine enamel $10
carbeurator $40-60
flywheel cover $20 or so on ebay
i have an exhaust to build...
things i already bought:
head gasket $5
crankcase gasket $2
ignition coil $20 i think it was... a "made in taiwan" copy.
solid state upgrade ignition kit $0 (got it for free!)
also a dremel is a great tool to have... with a flap wheel it works great to remove carbon buildup and paint.
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post some pics and lets see it. if it is in horrible condition, consider a parts motor off ebay. they shouldnt be too much.$