Wisconsin VF4D starting problems

A friend of mine recently bought an old Lincoln welding machine (built in 1959, according to the info I found by looking up the serial number) powered by a Wisconsin VF4D engine. The machine has set for several years, so we cleaned it all up real good, pulled the plugs out and sprayed some penetrating oil in the cylinders and let it set for a day or so just as a precautionary measure. Put gas to it today, as well as a new battery. Cranked it over and it backfired once through the carburetor before trying to fire. Cranked again and it started with a belch of smoke and ran poorly for about 5-10 seconds before shutting down. Tried the third time, and it wouldn't even crank over with the starter, just acted like it was locked up. Using the hand crank, I can turn it a quarter turn before hearing a loud click coming from the engine, which then becomes almost impossible to turn for the next quarter turn, then the click again and easier to turn for a quarter turn. If I turn it till it clicks and then hit the starter button it will spin over a quarter to maybe a half turn before locking down again. I know something has to be in a bind internally, my question is what should we look for as we tear into this thing, and is it even worth trying to fix it or should he just cut his $400 loss and throw in the towel. I've heard parts for these old engines are pretty expensive. Thanks in Advance.

Bryce
 

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