PTO...power take off...
The pto is the white looking flywheel in the back of the motor that the drive shaft connects to. The engine is divided in two. The PTO side, which includes the back piston and back carb then the MAG (magnetor) side, has the front piston, front carb and magneto assembly.
If you can't turn the engine over freely by hand, really in either direction, then you have internal problems. You may not be able to determine that until you pull the motor. If the noise was coming from the front of the motor, I'd say you may have an issue with the magneto, which is where you electrical system picks up power, and the starter and flywheel are attached. If your problem sounds like its in the rear, PTO end, then it may be a bearing or connecting rod problem. Being the rotary shaft is in the center, then maybe, the rotary shaft bearing has been done in.
If you wanted to continue working on it, then my idea, because the noise is in the middle, then I'd be looking at taking apart the carb to get at the rotary or even removing the head to take a look at the two pistons. If you do that, you'll be able to watch them travel up and down to see if they move freely without hesitation. What I mean by that, is if you've got a connecting rod bearing out, then the piston can still make compression, it's just slop when it moves up and down. When you see it go up, if it clicks and the piston hesitates before moving in the downward direction or vice versa from the bottom of the stroke, while the other is moving up and down without hesitation, then you may have a bad bearing. The rotary shaft can be pushed and pulled by hand or twisted from side to side to check the worm gear, but you still can't do a lot there. The worm gear is removable from the shaft, it's a splined gear. But if this is your problem, there still isn't a lot you can do with it on vacation.
Again, the natural rotation of the engine is counter clockwise, but if you can't spin the engine freely, without binding in either direction, then you've got internal problems. If you've taken shop, you know what I mean.
The decision of rebuilding yourself or replacing for me, would determine the amount of damage, once I took out the motor and split the casing. If you find casing damage or substantial damage the pistons and crank, you can get an engine replacement of that model for about $750 bucks with a one or two year "no fault" guarantee.