Could be the "permanently lubricated" needle bearing in the generator head has seized and spun. When it fails it lets the armature rub on the field poles causing drag/sparking.
To inspect, remove the thru bolts holding the generator head together then carefully pull off the end bell (watch for the pair brushes that will pop free as the end bell comes off). The bearing is pressed into the plastic end bell. Unfortunately when it fails it usually destroys the end bell.
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Today's Featured Article - The Great Escape - by Dave Hollrah. It all began Monday with a little baling of second crop on the lake shore field, and as I drove out past my sister and her hubby's place, this small calling sound could be heard from the general direction of their manure pile. Out of the yard, over the cows and bale piles, through the dozer piles, poplars, and brush, out onto the ditch grade road, past the noisy 6.2 diesel engine pulling my well traveled Suburban along. Well it sure didn't take me long to figure out what it was because I alrea
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