just to update in case someone else is searching this issue.

Replaced the water pump, coolant flush, t-stat and housing and both hoses. Water pump bearings were shot, you could hear them turning it by hand. What I did not order was the belt tensioner pulley and as I discovered it was making rattling noise when I removed it so I replaced it as well as the fan clutch as it was leaking fluid and original.

All back together and the noise is still present, although quieter. It is the
alternator pulley as well so I am sure the bearings are bad. I am ordering a new alternator now, 115amp version. I guess a 190,000 miles is enough to ask of a alternator. it may have been the alternator bearings dragging that caused the water pump and belt tensioner to go bad as well, who knows, but at least I have it all sorted out now.

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1999 E300 TD 190,000
1996 Passat TDI 225,000-sold
1996 E300 120,000-sold
1998 Jetta TDI 186,000 -sold
1983 Chev Suburban C20 6.2-sold