Exactly right - there is a belt and as you say it's no longer where it should be! Probably broken, probably due to age. If you disconnect the machine, pull it out and remove the top you will be able to look down the back where you will see a very large pulley behind the drum with grooves in it. Down at the bottom of the machine you will find the belt that should be sitting in those grooves!
Sourcing and fitting a replacement belt is reasonably straightforward DIY - go for it!
Richard
January 2009