I am replacing the crankshaft dampener pulley and found a very small round spring tangled around a ring inside the crankshaft housing. Any one know where this spring is supposed to go and does the engine really need it?

 

That's the spring off the lip of the oil seal.

 

Well, that is good. There was nothing inside the old oil seal except a rubber ring when I pulled it out. I should be good to install the new oil seal and woodruff keys.