kevin, these saws liked to ingest bar oil through the 4 bolts that hold the bottom of the crankcase to the cylinder. this would either hurt nothing, and gum up the rings AND decomp. or gall the hell out of the cylinder and piston. i have seen both. if you didn't see any bad stuff in there chances are the rings and/or hopefully just the decomp is gummed up and leaking. looking at the muffler screen, it looks like it was running on bar oil.