Well, obviously, the chain shouldn't stop in the cut like that. Like Russ said, I'd clean the whole area up real good, including the brake mechanism, and run it. Aside from smoking/discoloration, you can check for slippage with a heat probe of some sort right after a cut. I'd say you should be able to touch the drum directly with your fingertip without raising a blister, and that you should even be able to maintain contact, at least for a bit. Need I suggest killing the motor first and not engaging the brake, thus sinking any heat to it?
What depth do you have the chain "rakers" set to?
Glen