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I’m sorry, but to me it looks like it IS in the released position...

Derailedbus; get the side cover over the clutch drum, run it , engage it, release it a few times. It will drag at first but find it self and round out... unless someone has a better idea...

PTD; I appreciate your curiosity, but IMO your overthinking things a little...

PTD; getting back to your original question, in paragraph 3, (and thanks for that by the way) you mention replacing the bearings and seals. I just did that on my saw and I’m telling you now, splitting that case and replacing those bearings is no joke...! Not to impugn your mechanical skills...

That pic was taken 5 minutes after I purchased the saw. I noticed it as I was checking it out, I didn’t want to offend the old boy. I knew I had a jewel in the rough, saw+parts $130 Runs like new... As to the bar, (20”) I cut cedar rounds for my pit...works great for me..

PTD, my 026 has the 3 screw carb as well. Did a muffler mod after rebuild, love that saw... About the pre-mix, I run a fat 50:1 like the book says, IMHO I’m not arrogant enough or dumb enough to think I know better than a bunch of German engineers. There’s no conspiracy here, they lost the war...

Take a pic on your iPhone, let it load to your pic files, open this post section and hit upload a file, pick full or thumbnail then the DONE button, hell the above pic was my first one to... I didn’t mean to sound critical of your saw, and I know those old bow bars command a premium price, for...

PTD, are you saying that saw has a bow guide bar, no chain brake, and a full comp chain? If so, you’ve got yourself a man eating wildcat in your hands! Please restore the safety features and a standard bar before you use that saw. eBay has everything you need. A few pics would be nice as well...

PTD, one year ago I embarked on the same journey. I have a husky 142, it served me well to feed my fire pit but I kept my eyes open for a 50cc saw. I found a 026 by chance at the flea market, it looked pretty good but the guy said “ I will run but has very low compression cuz it was raw gassed...

If I may ask, why did you take it apart, and dose it have a red choke/off switch...? It appears to be a January of 08, piston so if you’re sure it’s a 026 you have a rebuilt saw w/ OEM piston and cylinder. If the cylinder is clean, then a new 260 meteor piston w/ caber rings and you’re good to...

Clean the top of the piston, you’ll see numbers like eg. 695 that’s June 1995. You can date the assembly of that saw. If it’s the original factory piston.

Hell, every now and then I’ll mix up a gallon of the old blendzall racing castor I used in my old bultaco for my trimmer And blower for old time sake. I probably wouldn’t use it in a new stihl ms 261 cm though...

Ryan_289; that mod should wake up that little saw some, but be mindful of where and how long you’re in the wood. Those front exhaust ports CAN ignite dry bark, you will most certainly start it smoking...so please be vigilant...

I think NickC is correct about the cylinder bolt, your not going to fat finger that right rear bolt in there w/out a tweezer. Dropping that bolt once is almost a sure bet....