The pulley has definitely slid down. If you can see or feel the crankshaft above the pulley, then it slid down. The pulley is supposed to be all the way up against the bottom of the engine. In the pic, it looks as though the pulley is slid down and that is why your pto clutch won't go onto the crankshaft. If you would post your model number and size of deck as I asked earlier, I can help you further, and send some pics as to what it should look like. Thanks.