I'm running a v-belt with no issues. You don't need to tighten it too much or you'll wipe out the alternator/water pump bearings sooner than later. Make sure all the pulleys are aligned perfectly. I used a straight 1/4" or 5/16" dowel (Home Depot) about 12" long. Seat it into the "V" of each pulley and rotate to the adjacent pulley - it should line up with all three.
I also machined the crank for the "D" sprocket from the TDI engine and used a new bolt torqued to spec.
I have no experience with the serpentine setup (assuming you mean one-way clutch) on these engines, but I have used one-way clutches on high cycle machinery and they can fail. Personally, I like to keep things simple whenever possible.