adjusting the cam chain tensioner correctly ?

You probably won't notice much change in the way the bike runs (but you might), this adjustment is more for noise and wear control. Too tight and you unduly stress other parts and accelerate chain stretch. Too loose and the chain rattles like loose valves. Too loose can also supposedly effect valve timing (opening and closing points) and the ignition timing. Those things are controlled by the cam which is turned by the chain.

I've revised my setting technique recently after reports that not all these engines want to adjust up correctly with the plunger flush to the adjuster screw end. On some, the plunger ends up inset slightly, on others it comes out past. I'm not sure what all causes this so now I just adjust for the 1-2mm of rod movement and don't worry about where the rod ends up in relation to the screw end. The theory is still the same - no rod movement and it's too tight, too much movement and you get noise or possibly throw the valve & ignition timings off.

You can demonstrate to yourself just what a loose chain sounds like. Loosen the adjuster way up while the bike is idling and eventually the chain will start rattling. It may take 4 or 5 turns, maybe more, but the chain will start to make noise when it gets loose enough. Now turn the adjuster back in until the rod stops moving (too tight). Best setting is somewhere in between those 2 points. Accepted practice is to adjust the rod for 1-2mm of in/out movement. I can't say I've checked mine much when hot but maybe I should. I always figured the chain was heating up and expanding right along with all the other parts.
 
On the bikes with out the lock nut, when you adjust at an idle. Once you get the adjustment hold the adjuster, reach up and shut the bike off, then install the cap nut.
I had another thought, instead of replacing the whole adjuster, just adding the lock nut may work.
 
yes you can adjust the cam chain tension while the bike is running. be careful not to burn yourself! i don't know that adjusting the slack will make any difference in vibration. 60mph seems the magic speed where the engine starts vibrating like a mofo. my uncle says it was the buzziest bike he ever rode. i don't know cuz this is the ONLY bike i've ever ridden!

anyways, adjust your chain tensioner until it bobs out and flush about 1mm then tighted the acorn nut back on and ride. check it every so often after a ride or if you hear any rhythmic clicking in the engine. also if you hear clicking check your valve clearances. adjusting the two of those helped out my biznass immensely. it will yours too.
 
I swapped the "guts" from a newer model into my housing so now I have the lock nut.
 
I had heard that these bikes were quite "buzzy" I will have to adjust it when its running again. one thing is for sure that taking a bike apart to paint it is a shit ton easier than putting it back together.
 
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