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I used to have this game for the Amiga... some pests will rust the gears (which stops it from moving) and other pests will bounce up and down on the little pegs effectively reducing the number of spots you can place gears...

On some of the later levels you will find that you have to make TWO gears active instead of one... and as for the bombs, I'm not sure.. I think you use those to remove the gears you don't want... Though I believe you get bonus points for every gear used intween the start and finish points, so long as they're all a part of the same line, so you won't want to use the bombs too often either...