Hi Brian,
It is unusual for a 200 to have that amount of misalignment unless one of the bearings in an idler or tensioner has failed. If it is a 'fender, it will only have a tensioner anyway.
Replace the tensioner and idler (if it has one) and the front crank seal while you are there. Don't get the tension too much as this causes belt run off and wear to the injector pump front bush/bearing. I think 11 to 15 Nm is all.
Sometimes it may be necessary to remove the whole front timing case to replace the water housing gasket at the front of the block, as this may leak coolant later on due to you disturbing the clamping force by unbolting the front cover. If there is ANY doubt about water leaks, do it now. The gasket is about $3, and although it is a bit of a job to replace it, its easier now you will be 80% of the way in there....
Enjoy!
JC


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