If it were me, I'd run that pump unless I had other doubts. Also, it looks like your crank is a V belt? Can you take some pictures of your belt pulleys and note any casting numbers? Hopefully we can get your belt situation straightened out too!

 

I would concur. The way you described it before I was picturing it turning a couple dozen revolutions without resistance. That looks like it should, imho. So yes, unless you see other signs of failure, leak stains, etc., I'd go with it.

 

I don't know if I was even spinning the water pump in the correct direction in my video. Maybe the video will help show if it is actually a worn out pump or not. I'm hoping it's still useable....makes it easier on the wallet.
The generator, crank and water pump pulley had a 3/4 flat H and was seated nicely all the way down. After some research, I found that ford did put that 3/4 belt and pulley in sometimes.
The pulley I ordered separate from the new alternator because they only came with v belt pulleys, supposedly it claimed to fit 5/8-3/4 belt. My old 3/4 belt fit perfectly on crank and h20 pump. I went to my local oreilly and was able to order a belt that seated on the new pulley and water pump pulley. I wont know if it works until I hook everything back up.