Well, the mystery has been solved as to the cause. Bad1 (and any other lt-a500f owners) you will definitely want to read about it!
I updated the thread over on my motorcycle website, you can view it here:
Link
If you own one of these machines, you definitely should be aware of this, because while the broken gear is not that big of a deal, the broken crankcase is (very expensive), I got really lucky in that my crankcase was repairable by a good machine shop, if not you are looking at $1700-$1900 by the time parts and labor are all tallied. I do my own work, but even still the crankcase halves are almost $1000 U.S. (yes, you HAVE to buy both).
Knowing what I know now about this, if I bought another of these machines I would make it a winter project to pull the motor, split the cases and replace this gear. If it does go, it can do alot of damage in a short amount of time.