Update:
Let me start by saying how I am determining whether the fan is on. With the truck running, I'm trying to stop the blades with a rolled up magazine. This will become relavent in a minute.
My cadillac valve is putting out 160PSI.
The fan clutch disengages with around 120PSI of air (engine is off when I'm testing this). The clutch moves in/out about a 1/4 inch, and I can move the blades by hand. However, there is still a LITTLE bit of resistance (when I spin it, as soon as my hand leaves, it stops).
With everything back together, I realize that the fan clutch IS disengaging, but for some reason its still tight enough that I cant stop it with a stack of papers.
Maybe everything is fine? Anyone have insight on this?