Just checked again. The crank pulley apparently has separate sections, including the outside ring that the belts ride on. The two outside rings have apparently separated from the center and have been pushed back against the front of the engine. If you look at the larger belt, the front of the belt is off the pulley and the back half is on becasue the pulley has moved back a couple inches. The back of the pulley is rubbing/grinding against whatever is in the front of the engine. Looks like either the timing chain cover or the water pump. The grinding doesn't start until the engine warms up and then is starts to drip oil and sparks start dropping to the floor.