Sorry, didn't realize you're all were still posting... Thanks. Will try to answer your suggestions in this post
1) the car is automatic so that shouldn't be the problem
2) I would love to be able to turn crankshaft/camshaft 22 to 30 degrees but it barely moves..
3) the pulley is brand new...that is what got me started on this project. It was bad - the outer part was slipping off the rubber from the inner part and was somewhat warped, I guess it did indeed rub against the cover and cut through it slightly.
I have some time tomorrow to look into it again. Don't know what the hell to look for, but wish me luck!