Hi Mr. Gently:
If you have failed sprag gears, you won't be able to see them until you remove the inner primary case and remove the small metal pocket on the rear that holds them. You may have to gently turn the partially exposed drive gear in order to pull the engine sprocket prior to removing the inner primary cover. Then you will be able to tell if it's sprag gears or engine failure. My sprags failed the way you are describing. Everything locked up and I had to tear down the primary before I could make the determination. When I was satisfied the sprags had failed again, I went for the kick only solution.
Neil
ps. If you go kick only, dump the lumb on the inner primary and get the correct inner primary. It'll make your life much easier for down pipe and muffler changes.