Dan, it's not uncommon for the con rod to rub occasionally on engines. I see it many times on several engines. Are you using a muffler with this engine? I've seen the stock muffler do this on that particular engine especially if it doesn't fit the exhaust stack tightly. The screw that holds the strap as well can come loose making black oil. Technically there's 2 screws, one for the retention and one to hold it to the muffler. That engine also used brass end pads on the wrist pin. If these wear out it cuts grooves in the cylinder walls. Hopefully that's not the situation. One other black oil problem on that engine is a loose venturi. Not only will it make black oil, but it will make crappy runs. The rubber o-ring becomes hard under the venturi base and the venturi wiggles. Doubling the o-ring works if indeed that's the problem. Ken