" The problem is, this pulley is spinning FREE of the engine crank. If im not mistaken, it should be LOCKED to the engines crank. Because if it spins freely, separate of the engines crank, you cannot put power into the engines crank and turn the motor over to start it."
When you say the pully (variator) on the engine is spinning "freely", is the clutch (on the outside of the variator) also spinning? If the clutch is spinning, does the whole thing spin when you pedal hard or just the outter rim.
If just the outter rim the cluctch is broken.
If the clutch is not spinning the pins that connect the variator to the cluctch may be missing or broken (odd).
Also is your magneto cover on the other side of the engine spinning at all?
If the magneto is not spinning the bike will never start and your clutch or connection between the variator and cluctch is broken.
If the magneto is spinning the bike may have other issues:
typical moby starting probs:
decompressor not open fully
everything else in fred's guide
Someone with more knowledge correct me if im wrong, i'm unclear as to whats really going on with his bike.