By teeth, I'm going to speculate that you mean some teeth or such sticking straight out the front of the pulley. If so, that sort of thing was used to drive front mount hydraulic pumps for loaders. The loader may be long gone, but the pulley was left on your engine. This can be a royal pain to work around, as the pulley lives in that channel down there. The "correct" procedure would be to lift the engine up from that area, loosening what you need to (don't remember which nuts and bolts) to gain clearance. The incorrect thing to do would be to force the new belt into there with screwdrivers and such. Twisting the new belt, probably gouging it a bit, and maybe even carving a clearance spot on it. Normally I'd abhore this incorrect technique, but these are slow reving engines, so you can probably get away with it. I do not understand what you mean by having groves in the old belt. Are you describing notches that go across the inside of the belt? Those are there to increase belt grip, or to allow a tighter radius turn, or to decrease belt wear, depending on whose literature you read on the subject. It isn't something to worry about though.
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