Originally Posted by
LesterOfPuppets
You also need to unscrew the inner (low) limit screw. Yours looks like it's screwed almost all the way in. With cable off, you should be able to watch the FD move inward as you unscrew the limit screw. With the chain on big cog in back, and little ring in front, unscrew it until the chain no longer rubs on the inner plate of FD. You may want to go a quarter turn past where it stops rubbing. Then screw the barrel adjuster on the shifter all the way in, then back out about a half turn, then attach cable. Don't pull the cable overly taught if you pull it really taught upon attachment, FD won't shift into small ring. If cable is too loose upon attachment, unscrew the shifter barrel adjuster as needed.
So I think you're right and the lack of a pulley is the source of the problem. The FD doesn't shift down as far as it should with the cable disconnected (I think the spring is weak) but it will shift far enough down to shift to the small chain ring.
The limit screw and cable tension are fine and not the source of the problem.
I'm not sure where to find a pulley though but maybe the local hardware store has something that could work.