Trying to solve my engine problem(s)

[Jay eS Iye]

ok, i have concluded that the pistons are not locked.
for those who don't know, my engine had died on me and wouldn't start a little while back. took off the head,s aw some water in the pistons, and also found evidence that there had been water in the dizzy cap. well, tried to turn the crank manually but it wouldn't budge so i guessed it was hydrolocked. so today I took off the oil pan to get a better look from below but couldn't tel anything.
well, call me a total dumbass, but i was at the point of "if the block is fucked and i'm getting a new one, i'm gonna try anything." so with the head and oil pan off, i cranked the car by the key and ignition and checked hte piston location and they moved. now i didn't want to hold it crank it or anything, but i know they move now. but if i pull on the timing chain or use a ratchet to try and turn the crank by the bolt on the pulley it doesn't move. but by trying to crank it by the key it moves. well a hour or so after that i had my dad come check it out with me, and while i was turnin the key, the pistons would move again (just a bit with each turn), but when i held it all the way it started to smoke a little bit. iy was electric smoke and my dad said he thought it was coming from the negative battery post and from something below on the same side of the car. well, i decided to go ahead and check the starter, took it off (which i may add can be a bitch) and its working absolutely fine.
so what can this mean? and should i just go and get a gasket kit, put it all back together and try it then or take it to a shop or what? i'm probably not making a whole lot of sense, but lemme know if I can clarify anything.

[fredthedragon]

hey i'm far from an expert but if you haven't checked it already try and see if you have the igintions set up wrong. you know sparks going to whe worng cylinder and such.

[Jay eS Iye]

well right now its just a block, no head, dizzy, oil pan

[digitalgrfx]

i dealin with the same prob with my gsr but its not any of my electrical shit.... I just have a bad knocking now, still waiting to pull the head off