If pulley is not lining up, but the sprocket is, then either the key was not installed, or the little end of the key that engages the pulley sticking out from underneath the sprocket is sheared off, or you may not have engaged the pulley key slot on the key end when you reassembled, and then mashed the little key end when you torgued to spec. If the key end is just sheared clean, you can leave it like that, but if the key is not there, then the sprocket will eventually slide out of register to the crank shaft and your engine will stop. If it was installed out of register and the key end was mashed, that could allow the tension of the bolt on the shaft to loosen with time and that could be VERY bad. I'd pull pulley, key and sprocket, see which it is, and get it right so that both pulley and sprocket are held firmly in register with the crank by the key and make sure it is torqued to the spec 217 ft-lbs.
I think this is what is going on. Or did you just not understand how to align the hard marks in the first place?