-- Last Updated: Jun-20-13 2:32 PM EST --
I didn't want to bury this within my other post where it might get lost. It looks to me that the pulley on the end of the boat closest to the free end of the rope is not turning easily enough. If that one sticks it will prevent the free-running of rope and as it rises it will LOWER the other end of the boat. Oil it up or replace it with a pulley that turns easier. That SHOULD solve the problem of the opposite end moving down while the end closest to you rises. If that doesn't fix the problem, you are back to the "car differential" situation described above, where in the absence of something physically forcing the two ends to remain at the same elevation, it just won't happen. Again, just keep pulling until it levels off at the ceiling, or keep lowering until it levels off at the floor. OR, keep adjusting it as you go. It should be easy to tilt the whole boat while you operate the hoist simply by grabbing the end nearest to you and forcing it up or down.
Here's an easy way to demonstrate to yourself that the pulley connected to the boat, closest to the free end of the rope, is not turning. Cinch the two adjacent sections of rope together where they exit that pulley, or have an assistant grip them with his hand while you operate the hoist. It will do exactly what you are describing, and you will SEE that the pulley isn't turning.
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