Thanks in advance for your help, and I apologize for the 'bullet point style' message but I am a bit flustered.
Brand new TAOTAO 150cc GY6 engine powered go kart.
Tested oil levels prior to start up, they were near the upper level of the hash marks.
During start up, exhaust smoked heavily. Assumed it was part of start up, let engine warm for ten minutes, still smoking, drove very slowly on paved neighborhood roads for one minute, still smoking from exhaust, then engine stalled when I let off gas during a slight downward slope.
Pushed back home, and checked oil again, much lower (lower hash marks). Leaking visible when I get under scooter. Remove shroud, this gasket practically falls off. It looks like oil is coming from here. (Pictures below)
So just a few questions, it that gasket just to keep the shroud from rubbing on the metal, or is it a badly installed valve cover gasket? If it is just a 'plastic on metal barrier gasket' should I just order a whole set of gaskets and start with the valve cover and see if that helps, because something is leaking, for sure.
The main question I have is if I ruined my engine. Will fixing the leak (wherever it ends up being) and adding more oil allow the engine crank? I don't see how those things alone would allow the engine to start turning over if it is not turning over now (since that stuff is all just mechanical, right?), unless there is some safety that prevents start up based on low oil level? I am hoping this is the case, but I don't know enough about these engines to know what kind of protections they include.
If I have ruined my engine, and fixing the leak and adding more oil will NOT help (maybe I have seized the engine?), what are my options then? Are there any resources for rebuilding an engine?
I purchased from a dealer with a warranty, and am waiting to hear back from them, but I need to get all my ducks in a row to handle this on my own if they tell me to kick rocks.
Thanks again for your help, and like I said, I am a bit flustered so I apologize if anything is coming out as gibberish or not explained well.
Video of startup:
drive.google.com/open?id=0Bx8zAFJkqoUic3ZvdXlJZVRnYmM
Pic of leaking with shroud:
http://imgur.com/vasJJLm
Shroud removed, this gasket is flopping around:
http://imgur.com/j7DCSw1