How not to remove a pulley?

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So I purchased the Harbor Freight “3 Jaw Puller Set” (32184) today for $12 and proceeded to put together all the pullers.  I installed the correct puller then broke the pulley.

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I guess I needed to remove the pen thing first (2nd picture with arrow)?  Not really sure how to remove it though.  I already removed the screw but not quite sure how to slide the piece out?  

Trying to fix an air compressor

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I am trying to fix one of my air compressors that I have laying around in the basement.  I have one motor that seems to work but the pulley is missing.  So I need to remove a pulley off a non-working motor and put it on a working motor.  I have never done this before but I did remove the nut thing on the side and I guess I need a puller pulley set?  I will try and purchase a set tomorrow from Harbor Freight.

Below freezing fun – Update

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I finished the fun septic tank digging for now.  If you look at the back wall you can tell how much crap I dug out (first picture).  The next picture shows what it looked like originally.  The arrow in the middle shows the pvc pipe.  Also I dug out a bay.

Below freezing fun

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What is the best thing that could happen when it is below freezing all day?  A stopped up septic tank.  Yea!

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I dug out alot of mud today.  But I still think the mud is above the drain.  I think the crap will settle and start to drain correctly.  But the water seems to drain very slowly now.