I replaced the bearing (straw clutching) and the shredded belt. I took out the drum, cleaned the fluff out of the machine particularly where the drum runs, cleaned the surfaces of the drum that rub, and applied a smidgeon of oil on them. I also sanded the surface of the drum where the belt contacts, being very careful not to get any oil on the drum at this point.
The thumping noise has gone, but the belt still rides off centre compared with the middle of the jockey wheel. It has done two or three cycles successfully.
If it fails within a few weeks again, it will be tumble dryer graveyard time.
BobG
May 2004