Check if the bearings have collapsed. If so the top pulley will be sitting at an angle - ie too high.
Check for bearing failure by seeing if there is any vertical movement between the moving stainless drum and the fixed outer drum. There should be no vertical movement between them - if there is the bearings have failed Another method of checking is to remove the drive belt and rotate the drum by hand - there should be no noise, roughness or resistance to rotation. Changing bearings is an involved job, only attempt if you are mechanically competent. No point refitting the belt if the bearings are shot.
Repair and service your own washing machine. Go to www.2ndwave.co.uk/manual.html
dannyboy
December 2008