This may be a dumb question !
When you put a new belt on must it line up exactly in all the places where the inside part runs ? Or will it fray from not being lined up properly ?

 

Iirc...as long as you install it properly by the diagram...once it turns a few loops it'll center itself, hopefully someone can confirm this...or dispute it.

 

Correct. You can turn it over by hand to center it too

 

the reason for my question is this .. sat. i put my new power steering pump on and put the current belt on.
After a few minutes of driving and idling i noticed some fraying.
in checking i found the belt was not centered on the crank shaft and rubbing on the inside.. I moved the belt to center of the crank shaft and so far no more fraying.
But I do need to replace this belt due to the fraying issue and will keep it as a spare in case of emergency.

 

Yes, replace it. Keep as a spare

 

You have to start with it centered on the grooved pulleys (the smooth ones don't matter) because it will not move out of the groove it starts in once you release the tensioner unless you move it. So no, it does not self center.