I had the same problem... Here is what worked for me:

Remove the pulleys from the crankshaft.  You will find a small spacer
somewhere in the mix.  Reassemble them with the larger pulley first, then
the spacer, then the remaining pulley stacks inside the first pulley with
the spacer in between.  On mine, there was a small dimple in the outer
pulley so I had to drill a hole in the spacer to allow clearance for the
dimple.

You didn't mention an A/C compressor.  If you don't have one, then my pulley
configuration may not work.  My alternator drives off of the A/C compressor,
not the crank pulley...

Bill Knight
Raleigh, NC

-----Original Message-----
From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com]On Behalf
Of Sean B.
Sent: Tuesday, September 04, 2001 2:16 PM
To: vanagon@GERRY.VANAGON.COM
Subject: TIICO belt pulley issue

I got my new TiiCo motor in over the three day weekend. Got the ALT and PS
pump installed and saw that all the pulleys (H2O pump, ALT, and PS pump)
lined up with the OUTER pulley on the crank. I looked at the destructions
that came with the kit and it looks like the crank, H2O pump, and PS pump
share a belt and the crank and ALT shaher another belt. Is there spacers
that I'm missing that are supposed to push the crank pulley and ALT pulley
out far enough to clear the other belts, or did I just hook things up
wrong? I didn't see any way to adjust the alt to use the inner pulley.

Sean B.
'90 V'gon, "Happy Bus", pseudo Wolfy
Torrance, CA
HTTP://www.vgonman.com