It seems like a stuck motor to me.....
"Yes it spins freely. But when first got it it would spin 1/8 a turn. So after a week and fillin the spark plug holes with B12 chemtool it came free and spun freely"
Are you able to turn the motor over by hand numerous revolutions now with the crank bolt?? I am still thinking it is still bound up in a spot....can you turn the flywheel or ring gear (automatic) with a flywheel wrench
