Can you diagnose my Stihl by listening to it?

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This is known as a "project saw". If you are mechanically inclined you could probably rebuild it. 026's are now pretty old, like 3 generations, but were (and can be again) great professional grade saws.

If I had this saw it would be stripped, all critical rubber replaced, crank seals replaced, and anything else that you find fixed. Parts common to later generations (MS260) are still mostly available. 026 specific, like plastics, probably not unless you can find it used.

Not so bad of a project. Saw is complete and cosmetically good. The OP already has replaced fuel filter, carb, plug, and air filter.

If cylinder cleans up : a piston, gasket set/seals, impluse line, maybe an intake boot. Could be done for $100 with a meteor or ebay OEM piston.
 
Fire it up in the dark and see if you see spark jumping from a punctured plug boot, or somewhere next to the crankcase.
I had a cutoff saw doing that once.
The guy took his plug boot off with pliers a bit too aggressively.
C' on! Real men just run their fingers down the coil wire as far as you can and then piss in the side cover whilst running to find a lower wire arc

It's an old Stihl so piss on it.

For sure, it's a bad connection in the ground hook or the inner wire is breaking down and/or a low arc at the the bottom as you said.
Doesn't seen to do that if the wire is arking on the cylinder end but just gives a miss.
Seems to keep doing it's thing even in the rain and snow where as with other leaks then it will not fire back up for fifteenth minutes after you shut down.
Sometimes the coil is getting a bad ground or bad connection as it goes into the coil.
 
But IF it runs a bit, the piston will just get smeared some more onto the cylinder wall.........:dumb2: :buttkick: :dizzy:

That's what I said! If you look at the video of the piston expanded to full screen where you can see it it looks like there is damage on the intake side as well. Looks like it has been strait gassed.
 

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