Ok, I got the engine pulled this morning (didn't have time to get the clutch or flywheel off though) before going to work. I can now see in through where the pipe attaches and see that the piston move up to the point where it gets snugh, but no further. I am spinning the flywheel so to see this.
So, what would cause me to still be spinning the flywheel but the piston appears to stick once it gets even the slightest of resistance? I plan to take the back plate off when I get home to see if I can see anything else, but I am starting to think it may not be a issue with the piston sleeve, but more like somethink broke or came loose inside the engine.
Thanks again for everyones help.