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Update: pulled the belt and sandpapered the crap out of it. Swapped the lower bracket back to the rear of the alt and everything is good now. Still wouldn't mind having a shorter belt since its maxed out on adjustment but I can live with it as it sits.
I also had a problem with smoking the belt. The last one ripped my A/T cooling line off. I grabbed another alternator and installed it. This time, it was the 8.25 model. I decided to extend the mounts to catch the second pulley that comes off the water pump pulley. That way, if it shreds, I won't have to remove this pulley to replace the belt. I also, made a new adjustment bracket. To move this out, I used spacers made to length. This meant adding 1- 13/16" to the spacers and installing a 44" fan belt. I am extremely pleased with everything now. No more belt shredding and more ease of future installs.