I actually had the spring inside the ratchet mechanism break. I started to look for replacement parts and found ereplacementpart.com. If you go to the site you can order the "Strarter housing assembly" or if your mechanically inclined order just "Recoil pully assembly". Other replacment parts websites should have the same exploded views; you will just need to do a little shopping to find the best price.
Ernie, August 2010
I have the same issue...it turns out it is a plastic gear on the pulley system and all the plastic teeth are worn/broken...some ingenious person decided it would be good to have a plastic part rub against metal gears on the actual motor housing. I'm trying to find a replacement part now