The Final Mechanism:

So I reconstructed my mechanism for the third time and it works great. I used metal screws and nuts and set them into holes that were a size large for easy movement. I also put soap on all the connections so that the wood slides over one another more freely. Now when you put weight in the basket it causes the opposite weights to rise and fall when the weights are removed. In addition to the up down motion that is created through the addition and subtraction of the weights the arm connecting to wind mill is also forced to move and there moves the wind mill.