I do not have a feeler gauge, but I will purchase one tomorrow to see what is it. Thanks on the advice for the AC not engaging too, cleared up some worries because it is freezing outside.

Also for the gap you are talking about, it is still making the noise even though I do not see the whole clutch moving.

If it is still rattling while clutch is not engaged, then it probably is a bad bearing, requiring a compressor replacement.
That being said it is often difficult to pinpoint noises, and I like to use an auto stethoscope, to guarantee it is not coming from another accessory pulley.

Yes, the clutch is not engaged so it is making the noise. If the bearing is bad, can't I just purchase this: http://contentinfo.autozone.com/znet.../1121/image/4/

That will replace the whole clutch so I can avoid buying a new compressor

With the car obviously not running, grab a hold of the AC pulley and pull hard up/down/side to side, and see if you can feel any movement..movement= get a new compressor.

Soft Ride is correct........if the temp outside is below 35-40F, the PCM will prevent the clutch from engaging.......there are several ways it realizes it.....some auto HVAC systems have an outside ambient temp sensor, which would not allow clutch engagement......when the car first starts, intake air temp sensor and the coolant sensor, should be equal and the PCM will know ambient air temp on startup, so it will not allow clutch engagement under a certain temp.....also, most cars now use a pressure sensor......with cold temps, this will lower the pressure in the refrigerant lines, and if pressure is too low, it won't allow clutch operation...

As for your noise, if it is grinding when the clutch is not engages, and the noise goes away, when the the clutch engages, all you have is rust buildup between the clutch contact surface, and the mating surface of the clutch pulley....

Two things you can try:

I take some sand paper, and I slide it between the clutch and pulley(naturally you don't do this while the engine is running, )......and I work my way around the pulley, making sure I get both the pulley and the clutch surfaces.....sometimes you can fold the sandpaper in half, and get both sides at the same time....sometimes, the gap is too tight, so you use one side, go around, then reverse the paper, and go around again.....then using an air hose, blow out any loose rust.........this has worked for me in situations where the rust was not that bad....

Second thing you can do, is rent a clutch removal tool, and increase the gap of the clutch plate from the pulley, by a few thousands of an inch.......

Thanks for the help guys, I bought a new ac clutch and it came with a new pulley and the bearing inside. My old AC clutch bearing is bad, I took off the belts and spun the pulley, it made the noise. I tried to install everything to day by myself, I had no room to remove the ac hub so i am taking it to my mechanic tomorrow to get the part installed. Also, my AC works too! yay, it was warm out today