how bad is this: crank pulley rubbing against timing cover?

[talonawd94tsi]

in my 2gen (98) my crank pulley is rubbing the timing belt cover.
is this the beginning of crank walk or is my crank pulley messed up.

my crank pulley does not look like it is wobbling but that may b/c it is right up against the timing belt cover.

thanks

 

[project94tsi]

make sure the timing cover is tight against the engine.