This may sound dumb, Rick, but you have the belt on with the ridges facing out, right?
I only ask because I have seen posts on various forums where folks are having trouble with the belt because it was on backwards. It's an honest mistake.
How much tension? It can be pretty tight, but doesn't need to be guitar string tight.
It's subjective, but the belt needs to be able to slip from a safety stand point. How much slip is the part you have to decide on for yourself. I make sure mine will slip before the motor starts to stall.
Dean W