Are the wheels on clutch not lined up right?

Had clutch issues over year ago got frustrated gave up but iam back at it lol not sure if Iam right but is that front wheel supposed to be in further cause a small part of the bigger wheel is not even on it
 

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That won't be a problem, I've got one like that. Ironically my best running engine is the one with the gear offset, it also has crankshaft movement in and out. After I rebuilt it and found the crankshaft run out I put it on a shelf as a spare, a couple of years ago I built a 24" bike and decided to try the engine, it runs better than my main bike.
 
That won't be a problem, I've got one like that. Ironically my best running engine is the one with the gear offset, it also has crankshaft movement in and out. After I rebuilt it and found the crankshaft run out I put it on a shelf as a spare, a couple of years ago I built a 24" bike and decided to try the engine, it runs better than my main bike.
Thanks Greg last time I had bike out over year ago my back tire froze up for 2nd time caused me a flat tire and along walk home do you have idea what that's all about and thanks I appreciate you
 
When you dissemble the rear wheel you have to be careful, you can get the bearing “crush” wrong and cause bearing failure, this is mostly found on single speed wheels where the brake arm has to be removed to install the sprocket. A simple and helpful way is to put the axle in a vise with the brake arm on top, use a backup wrench to hold the bearing cone/nut to keep it from moving, take off the nut and arm, install the sprocket then put the arm back on without moving the wheel. That gets it as close as it was before you started.
 
If you find the chain bound up behind the chain cover your chain tension was probably too loose, it take some time to learn what each bike needs.
 
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