What you bought is a well known issue with 036's. The sprocket bearing would let loose in them, sometimes the clutch carrier clips would break and get in behind the clutch and tear up hell. They would wipe out the oil line and the worm gear tang too. Sometimes the broken parts would get behind the clutch and grind a hole right through the crankcase. The major upgrade when the MS360 took
the 036's place was all in the clutch area. Check the end of the crankshaft real close and you will probably notice its concaved from all the movement of the sprocket flopping around on it, if it is she's DONE, not worth fooling with, crankshafts aren't cheap and a mint 036 isn't worth much over 300.00-350.00 if that..
When you heard that nasty noise when you first fired it up the damaged was already there when you bought it. Seller may claim not to have known but how he could not have seen all that oil pouring out from the cut oil line is doubtfull at best...
As the final (for now) recipient of this saw, I can state without hesitation that it is anything but in "excellent" condition. The red flag should have gone up when the box was opened and a complaint made to resolve the matter right then and there.
But now it's my little winter project and I 'preciate the tip on the crank end and will inspect accordingly before running out and buying bearings and seals for it!
Poge