JCD, I moved your post to its own thread, because I don't think your problem relates to the issue discussed at length in the thread you initially put it in.
You MAY have pretty much correctly diagnosed the lowering problem with your idea of a pulley/cable interference issue. I suspect, if the cable is not moving on that side, that the cable there will be somewhat slack if you lower the top a bit. I'd try that, but don't lower it so much that you twist the top much, because you can break the guide blocks.
If you find that the cable is binding somewhere, and you can't see where under the trailer, then I suspect you'll find the problem under the interior trim strip that is on top of the bottom half INSIDE the trailer. You have to take that trim strip off (just remove the screws). That will show you the cable as it goes over the topmost pulley in the system. I suspect, rather than a pulley break, that the cable may have become frayed there and is binding through the small opening that it has to pass through.
If so, you'll have to replace the cable. You should inspect the other cables at their upper pulleys if this is the case, because they might be damaged too. The cables tend to rust and break over the top pulleys because they don't get inspected often enough and don't get lubricated.
Let us know what you find.
- Jack
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