I just got my first jeep 95 cherokee found it shredding belts due to crank pully not lined up with the rest! The guy I bought it from said motor is new but I doubt it! BUT crank pully sticks out over an inch past the rest! any ideas on what to do? are there different sizes

 

Replace your harmonic balancer/pulley on the crankshaft. This is a common failure and has nothing to do with the fact that the engine was rebuilt.

 

^ What he said. New Harmonic Balancer.