I have seen the Willys leak right at the bottom corners of the timing cover gasket. Nothing a dab of RTV wouldn't fix on installation of a new gasket.
Best way to remove the pulley is with a puller. Otherwise a plastic face hammer may do it. But the puller is the right way.
The hammer thing is only for the engines with the solid steel pulleys. I wouldn't try the plastic hammer on the cheaper stamped pulleys.
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