Moped Army

So if it is trans oil burning whats that mean? How can I diagnose or fix the problem? The guy I bought it from could not get it to run, when I cleaned carb I found a piece of metal jammed in the gas intake hole of carb so it wasn't getting gas. The reason I am telling you this is that it seemed he spent a lot of time starting it by shooting carb cleaner in the head. could that of damaged something if done to often. Do I need to crack the case open or should I wait and see if it goes away. The motor was somewhat loose on frame when I bought it too, could rattling around like that damage seal. Has fresh gas and I changed trans oil when I got it home last week. Help!!!!Thanks for answers.