From your picture it appears that the belt has a "roll" on the bottom of the alternator pulley.....the belt should be tensioned so that there is only a 1/2" up and 1/2" down flex from the centerpoint between the pump and the alternator.
Looks to me like 54 TOW is correct in you needing a slightly shorter belt so you can snug it down a tad more. You can't go wrong with the Goodyear Gatorbacks. Also, on the belt dressing......if a belt needs dressing you need a new belt. Your belt just needs to be properly tensioned.
Dave
