I am installing a idler pulley on a jeep grand cherokee 1997 with the bolt. Which side of the pulley faces inward and which side faces outward? Which side does the flange on the bearing bushing faces inward and which side faces outward?

if there is nothing wrong with the ac pulley bearing , just disconnect the power to the compressor and use it as an idle pulley
because the ac pulley is in the system , and another belt that by passes that pulley will have the belt grooves running on a flat idler and the belt life is considerably reduced to over come that will require another idler pulley and bracket

Look for images or "location" on google.

1998 Jeep Grand Cherokee 5.2 Liter And 5.9 Liter Serpentine Belt Routing try this link http://autorepair.about.com/library/pictures/illustrations/bl750a-lib.htm

Your threads should be standard right hand. Don't worry about the pulley turning when you break the bolt loose. The bolt is isolated from the pulley by a bearing (the one that failed) so the two turn independent of one another.

Good luck.

Should only be one bolt going thru the center of the pulley. probably a 14 or 15mm size.

right, for the 4 liter,

1. Loosen the rear power steering pump mounting bolts using a ratchet and 13mm socket or a 13mm box wrench.
   
2. Loosen the pump upper pivot bolt, lower locknut and the pump adjusting bolt using a ratchet and 13mm socket or a 13mm box wrench.

For the V8

1. Attach a socket or wrench to the pulley mounting bolt on the automatic tensioner and rotate the tensioner assembly clockwise until the tension has been removed from the belt.
   
2. Remove the belt from the idler pulley first and then from the vehicle.

Do you mean the tensioner pulley?

Then, I would look for something with a 1/2" square hole in a pivoting spring loaded pulley that is designed to put 'tension' on the serpentine belt.

Depending on the engine, it can be located in various positions.

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REMOVAL & INSTALLATION - 8 cylinder engine Alternator Belt

1. Loosen the alternator mounting and adjusting arm bolts.
2. Pivot the alternator inward and remove the belt from the vehicle. To install:
   
3. Install a new belt.
4. Holding the alternator in place to maintain tension, tighten the alternator mounting and adjusting arm bolts.

Power Steering Belt

1. Loosen the adjusting and mounting bolts on the front face of the steering pump cover plate (hub side).
2. Pivot the power steering pump inward and remove the drive belt. To install:
   
3. Install the drive belt.
4. Holding the pump in place, tighten the adjusting arm bolt and the mounting bolts.

Air Conditioning Compressor Belt

1. If the engine is equipped with an idler pulley, loosen the idler pulley adjusting bolt and remove the belt.
2. If not equipped with an idler pulley, loosen the adjusting and mounting bolts.
3. Pivot the air conditioning compressor inward and remove the drive belt.
4. Installation is the reverse of removal.

Air Pump Drive Belt

1. Loosen the adjusting arm bolt slightly. If necessary, also loosen the mounting bolt slightly and remove the drive belt. To install:
   
2. Holding the pump in place, install the drive belt, then tighten the adjusting arm bolt and the mounting bolt.

I'll assume you have a 4.0l

The 4.0L engine is equipped with a reverse rotation (counterclockwise) water pump. The word REVERSE is stamped or imprinted on the cover of the viscous fan drive and on the inner side of t he fan. The letter R is stamped onto the water pump impeller. When replacing water pump, ensure proper pump is installed. Installation of the wrong water pump will cause engine overheating.

NOTE:On models with 4.0 L engine, front grill must be removed to access radiator draincock. Draining cooling system can be accomplished by removing drain plug from side of block as well as by loosening radiator draincock. Drain plug is located on lower left side of engine block.

Disconnect negative battery cable. Drain cooling system. Disconnect electric cooling fan connector. Remove electric cooling fan and electric fan shroud assembly (if equipped).
Loosen, but do not remove, 4 water pump pulley-to-water pump hub bolts and 4 viscous fan-to-idler pulley nuts. Remove accessory drive belt. Remove 4 viscous fan to idler pulley nuts, and remove fan and shroud together.
Remove 4 water pump pulley bolts and remove pulley. Remove power steering pump and bracket. Disconnect heater hoses and lower radiator hose at water pump. Remove 4 water pump retaining bolts. Remove water pump.

to install just reverse procedures

Should only be one bolt going thru the center of the pulley. probably a 14 or 15mm size.

If you have the same pulley arrangement that most 4.0 engines have that pulley is an idler not a tensioner. Your power steering pump has a pivot bolt, and a slide under the pump. You adjust belt tension using the pump.