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Collection, Preservation and Display of Old Lawn Mowers

Atco Standard 147cc engine

Working on my Atco Standard the engine is now locked, having previously turned over easily. I have not been able to free it it with lubricants and gentle persuasion so have dismantled it. 

Can the fan chain sprocket be removed by tapping or does it need a puller? It seems very tight. The bottom end bearing seems rusted so need to get that apart. 

I can’t quite understand why it was turning over then locked? Perhaps it is corrosion as I think the fuel tank had some water which had inevitably found its way into the motor.