Outdoor Power Equipment (Lawn Mowers, Snow Blowers, Chain Saws and more) Discussions

I am mending a B&S 35 classic engine which has recieved some nasty treatment. The (dynamo?) generator deely spent a while rubbing heavily on the flywheel. This made it hell to turn over, but possible, soo it ran like this for a while and got bad. Is this salvageable?
What is it called?
This is probably the reason for my inability to get a spark, isn't it?

thanks in advance for help, i'm new to this and am gaining experiance on small engines.