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I had two great days riding my new Plus, then the chain started clanging and catching. I watched the video for freewheel and layshaft replacement, and opened up the bike. Everything looks right and the parts are firmly in place. When I put it back together it still had the problem. The chain was nice and taut when i first got the bike, now it is too loose, and it happened suddenly. The chain will actually get caught between the tire and the housing jamming the pedaling. I tried changing the bearings from Medium to High-- a big mistake, this is not a small enough adjustment, and you will ruin the bearings or the chain. THEN I discovered the problem:

I shaved off the lip formed on the inside of the bottom edge (parallel to the chain)

of the crankcase housing that narrows the gap between the tyre and the housing. This narrow gap causes even a very slightly stretched chain to get caught and cause damage to the tyre, or break the chain, or even tear up the bearings. If you shave off that lip, the chain can safely drop as it stretches, causing no damage. It is not unusual for bicycle chains to stretch and it is normal to allow tolerance for such stretching. I shaved mine off using a Dremel rotary tool with a grinding bit, but you could just file it off. Be sure to take the housing off the bike before doing the work to avoid getting shavings up in the gears. In the next photo you can see that the lip has been removed and the chain has just enough room to fit between the tyre and the housing.

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I think I am having the same problem, I just purchased a used bike and although the bike looks great, the first ride was quite disappointing with the chain slipping and making a loud noise again and again. I am just wondering whether or not what worked for you will also work for me. I am tempted to try. Any other tip?

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