Hard to tell from the pictures but I think that only one run of the belt passes through the hole at the rear of the suds tray. The front run of the belt passes down through the centre of the headstock.

I have the same lathe and belt but have never had the rear headstock cover off so never actually seen the belt other than inside the motor compartment.

Ian P

Ok, so let's establish some things,

Is this lathe new to you ?

If so did it come in bits or are you having to replace missing items ?

If we assume that the pulley on the headstock is correct – reasonable due to its position etc then the rubbing must be down to what's happening at the countershaft end. Either the pulley on it is too large in dia. It's in the wrong place or the countershaft is misaligned. I can't recall how much adjustment is available on the countershaft as I never had the part of my AUD in pieces (no longer have it). Can you post some pics of the motor cabinet side of things or the pile of bits that you have ? This is to check that you have the right arrangement – on mine some idiot had removed the countershaft on the motor end so the whole thing ran far too fast.

Tony