Hi Robert,
The sparking you are seeing through the rear vent holes on the saw is caused by a bad armature. Many different things can cause the armature to go bad but the most common causes are using too long of an extension cord that is too small gauge or cutting in a manner that causes the saw to pull more amps than it can handle. (Such as deep cuts in concrete, etc.) The armature will need to be replaced.
There may have also been damage to the field. When you open the saw you will want to look for signs of burn or melted insulation on the armature and field. The field can also be tested with a multimeter set to test impedance (ohms). To test the field take an impedance reading from one side of the coil and then the other. The number you read from each side should be within a few ohms of the same. If it isn't the field is bad.
The armature is part #2610931892 and the field is part #1619P02674. Both of these parts are available from http://ereplacementparts.com.
Good luck with your repair!
-Mark