The spring in the starter could be broken and not pushing the starter gear out to the flywheel. The starter will still crank but it won't spin the flywheel.

 

people here are very smart
I forgot that with the timing belt broke it would crank

I haven't had to hit a starter with a hammer for too long LOL

 

As for the starter spinning, this could actually be a ground problem. Not sure if the '97 LS ignition compares with a '03 SS, but the transmissions are similar. In the case of the '03 S, I found the ground was bad where a large cable and two smaller, interconnected ground wires attached to a stud fastening the transmission to the engine. It's below the air intake duct on the driver's side. Make sure that's a clean ground.
Please keep us posted.