Jerry-
Yeah, I have the balancer and timing cover removed. My engine was leaking from the front too, and the front engine mount was rubberized goo. So I needed it all off, and I can only assume that the front part of the crank did indeed drop enough to disengage the gears. I'm frankly surprised, but it is what it is. I'm hoping I'll get this issue resolved with 100% assurance using the method you describe, the marks on the gears, and common sense.
