The starter turns the crank so yes the crank is turning. The pulley on the front of the motor uses a key to keep it properly aligned with the crank, and then uses a bolt to hold it in place. The pully actually does turn with the crank as that is what is turning the alt, p/s, and a/c belts.
I have not been inside the timing cover yet so I am not familiar with how the pully that turns the timing belt is attatched to the crank but I assume it uses a key as well.
The only possibilities I can think of for this problem would be the key broke, the pulley broke, or the belt stripped its teeth at the pulley so that the pulley is spinning freely in the belt instead of turning it.
This is all new to me in that I have never heard of any of these happening before. Was looking for insite from others that may have had some experience in this area.

Thanks for the suggestions.