In your second post you said, "The idler pulley (the one below the transmission) will spin freely counter clockwise. It spins with some effort clockwise".
This statement led to some wrong conclusions. If it is the large plastic pulley you were turning, that is NOT the idler pulley, the idler pulley is the little white one on the spring loaded arm that keeps tension on the belt.
From your last post it sounds like you will need to replace the transmission to fix your problem. The transmission should only turn freely in one direction, the other direction it should completely lock up - if you are able to turn it in the lock direction by hand then the one-way bearing at the bottom of the transmission is bad.
Once the lower one-way bearing goes bad it creates to much resistance for the transmission to start turning and the belt burns up because the motor pulley just spins at one spot on the belt - the belt is made to slip in this fashion as this is the clutch for this machine, (the belt slips on the motor pulley until most of the water is out of the clothes and the basket is turning at full speed).
The lower one-way bearing can only be purchased separately from the transmission on E-bay or bearing suppliers by doing some research, then you have to be able to pull the old bearing and get the new one pressed back on. The only official way to get the bearing is to replace the complete transmission.
- Samurai Appliance Repair Man likes this