Hi Wolfie,
the belt should not need to be too tight, as Swarf M. says the pulleys are slightly crowned over the width, you can see that on the picture that Ady put the link to, the larger pulley shows the slight crown. It is that crowning (aka 'barreling'
which keeps the belts on the pulleys, it doesn't need to be much in order to work. Too tight is likely to exacerbate the problem of the belt slipping off the pulleys. As Ady also says you will only shorten the life of the bearings on the spindle and motor.
When serving my apprenticeship I worked with a guy I can only call a 'master' turner. He had a lathe which originally ran from overhead shafting. The 'new' electric motor was mounted on a wall bracket and the original drive pulleys on a countershaft drove the lathe. The motor and countershaft were on a platform hinged at the centre, on the wall bracket and the motor was arranged so that it's weight tensioned the belt. My tutor changed speed while the lathe was running by hitting the belt sideways and it would either slip onto the smaller pulley or ride up onto the larger one. It would then move on the countershaft drive pulley until it was aligned. the belt was around 12 foot long when off the machine.
In the days of overhead shafting that was how the speed of your machine was changed. A machinist couldn't stop the whole shafting system just to change speed. The pulleys should be reasonable aligned to work, oil or grease on the pulley shouldn't make much difference unless it is really excessive, these belt systems would become covered in the stuff and leather belts were often dressed with oil to preserve them.
It is possible that your pulley shafts became misaligned when changing the belts, there is usually a method of setting the angle of the motor drive shaft usually a combination of adjusting screw threads or bolts. I'm not sure how this is managed on the S&B but perhaps another owner or Tony at Lathes.co.uk might be able to offer advice or a manual. It is also possible that a a manual is available through the inter-library loan system or stored on a user forum where files can be uploaded.
Good luck,
Terry
Edited By Terryd on 21/07/2012 02:38:54