Kudos to connerm and mpolli. After digging into things several more problems arose.
1. Tensioner bearing frozen (the attachment bolt), why don't know its a Febi/Bilstein new 15,000 miles ago. Forced some new grease into it along with some WD-40 and its functional again, but bit the bullet and bought new from the stealership, yikes!
2. Tensioner shock very weak, also only 15,000 miles on it, bought new from the stealership.
3. Wrong belt length! According to my VIN, and engine number from the data card, I ordered and installed the correct belt, but its too short. Which makes me wonder at this point if this is not the original engine, and some parts have been cobbled together from another engine.
4. Installed the old belt which is a 2440 mm Dayco, the 2415 mm Dayco is to short. Also the old belt is 4.3mm thick and the new one is 5.0mm thick. The old belt is almost more like a smooth and very flexible silicone compound as opposed to the new Conti and Dayco belts which are stiffer, thicker and have a textured back, not smooth like the old one.
5. Even with the new tensioner and shock installed the tensioner pulley (where belt runs over) has minimal clearance with the water pump pulley. I mean cigarette paper clearance with thinner old belt. This lack of clearance destroyed the new Conti belt because the inner lip of the water pump pulley was making contact with the belt. It eventually pushed the belt over and carved a .1mm groove into inner running edge of the plastic tensioner pulley, side loaded and chewed up the belt, hence the perceived alignment problems.
6. Also cleaned all pulleys with wire brush, lacquer thinner, and compressed air.
Result is totally quiet and my daughter's car is back in business! However I am still not pleased with the lack of clearance between the water pump and tensioner pulleys.
I am wondering if a belt 5mm longer (some are now sold as 2445mm) would provide more clearance? Someday in the near future I will have to purchase a new belt and the 5mm thick belt will once again impede with the water pump pulley. Thoughts.