John Deere 110 round fender restore belt question

Restoring a 110 round fender and having trouble with belt adjustments. I have new John Deere belts, brake peddle adjusted to 1/2 " below foot rest and
the variable speed lever adjusted correctly per manual and brake arm adjusted as well. Problem is when you pull lever back to slow position the
primary belt gets very loose. In fast position it's fine. Also the tensioner on the secondary belt rubs against the belt and it should be at least 3/4"
between the pulley and the belt. I have the transaxle in the back holes. Anyone have any idea what is going on with this.
I will say that the tractor is still on blocks and not under any load. It may operate different when I put the wheels on and put it on the ground.
I have had several 110's and never had this problem. It's a 1966 model. Thanks for input.
 

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