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sounds like hair or string or something like that is wrapped around the beater bar(the long brush under the head that brushes the carpet) keeping it from turning. The belt that drives the bar is getting hot because the beater bar is stuck.
It sounds like the belt has been damaged. You can get another belt from yoru local Oreck store. You can even take it in to the store to show them what happened. Purchase another belt and replace it. (It was very easy when I did this, so hopefully the belt is all you'll need too.)
If it smells like burning rubber with white smoke its the belt make sure the brush spins freely. If its a electrical burning it will smell real bad you WILL be able to tell which then its a motor issue you can remove the bottom plate 5 phillips head screws opposite the motor youll see 1 screw remove it pry the duct out and look to see if there's anything stuck in the fan if not its the motor its self
I am having the same trouble. I bought the vacuum new in October 2007 when my wife and I purchased a newly constructed home. Since it is only two of us, she only has to vacuum once a month. I have taken it in three different times and get the same story. It needed a new belt. Mine has white smoke coming out of it and smells like burning rubber. I contacted Oreck and got no results. They refused to let me discuss this with Dave Oreck, stating that he nevers talks with customers! Gary Neeble
Because it has a dirty fan system where dirt is picked up and put through the fan impeller before it goes up the back spine and into the bag, it sounds like stones or hard dust has entered the fan and bounced off into the motor. Sadly this is one of the most common factors like Orecks that have a dirty fan system. It would have to be repaired unless you know how to take it apart and clear it. The green light certainly sounds like something you picked up with the Oreck and it has affected the motor.
The best solution to any Oreck vacuum problem is to replace it with another brand. You are going to continue having problems with the Oreck..Not that other brands don't have problems. But, at least with other brands the problems don't occur as often. Belt burning up. clogs, roller brush bristle wearing down prematurely, cord breaking internally, etc. P.S. Oreck is good at one thing. Marketing!