Mark: Here's my take on your issue; you said it smoked profusely during the first hour. To me this indicates it had to have a good supply of smoke fluid available. I do not know how much fluid was added initially and during the subsequent running time. I also do not have this engine yet to look at inside ( I do have a separate sale PM on order...).
The Flyonel engines I have been into have a smaller unit than the "O" gauge counter-parts which means the reservoir bowl is also smaller and may not hold as much as we're used to using on our bigger brothers.
I suspect you may have over-flowed some smoke fluid down into the blower motor. That being said, every one I have had this happen to, I've been able to rescue by a quick dunk of the entire motor into some 91% rubbing alcohol followed by blowing dry by strong mouth air flow. Once dried, re-apply some lube oil ( Labelle 107 etc.). Once you're sure the motor is dry, attach some leads to the motor brush connectors and momentarily hook the other ends of the leads to a 9V battery; usually this will cut through and residual insulating film between the brushes and commutator allowing the motor to operate again.
If you feel like opening, this may get your motor running again.
