Tonight after work I decided to stop messing with the spring tensioned chain (loose ends of chain hooked together with a spring, before cutting it to proper length) and cut it to length instead. I quickly discovered that the rear sprocket is slightly warped.
All the messing around that I did with my laser chain alignment tool was for not, a complete waist of time. The warped sprocket skewed how the laser pointed down the chain run. I now have plenty of air cleaner clearance and the bearing carrier actually clears the seat post tube. All is good in bonehead
land now! it actually closely resembles scotto-'s positioning. I am going to run it how it sits right now until the chain stretches a bit, then mess with alignment later if necessary. No, the sprocket is not warped enough to cause the chain to jump off.
Air cleaner clearance.
Clearance between seat post tube and bearing carrier.