Yes, I realize now that the chain wrench wasn't the best idea. I guess I relied upon the Haynes book too much. I tried putting two bolts in the holes, but couldn't get enough leverage for it to work.
So my worst fears are correct? I need to replace the harmonic balancer?
It is a 1995, Legacy Wagon, with a 2.2 engine (none turbo).
I tried to see where it was coming from, but couldn't really find a location. As a part of replacing the thermostat, I replaced the hoses as a precaution, so it likely isn't that.
I checked the oil and nothing seemed to have gotten into the oil. Although, I guess I could still have a cracked head?
All things I will need to pursue more, if replacing the current things didn't work.
The car has about 130,000 miles on it and it looked like it was well maintained, as I got a whole folder of what was done with it. The timing belt had been replaced around 80,000, so I thought I would replace that along with the water pump (that should address a possible gasket leak). I have everything back together to the point of putting the pulley back on. That is why I am writing. To see if it is toast because it has spun. I would think yes because the timing mark would be off, but just checking.