This comes in at 107 chars (not counting command line invocation):

perl -Mstrict -wlne 'while(s/(\w+?)\1+//){print$`if$`;my@L=split"(?=$1
+)",$&;printf"%s repeated %i time%s\n",$1,$#L+1,$#L?"s":""}'
[download]

Or, more readably:

while(s/(\w+?)(\1+)//) {
  print $` if $`;
  my @L = split "(?=$1)", $&;
  printf "%s repeated %i time%s\n", $1, $#L+1, $#L ? 's' : ''
}
[download]

Note that this version is slightly more accurate to the spec you've given; by your own definitions 'foofooofooo' should give:

foo repeated 2 time(s)
of
o repeated 3 time(s)

i.e. not separate stuff that fits no sequence into individual characters (like '123456').

Update: as Corion points out, without the ternary op to add the optional 's', or the 'my', you can take this down to a mere 93 characters:

perl -wlne 'while(s/(\w+?)\1+//){print$`if$`;@L=split"(?=$1)",$&;print
+f"%s repeated %i times\n",$1,$#L+1}'
[download]