chain adjustment

That happens when the rear wheel moves as you torque the axle nut. Here's what I learned on dirt bikes: loosen the axle nut, then set the chain tension. You need to pull down pretty tight on the chain when you do this. Leave the axle nut loose.

Now use a small screwdriver or etc (a pocket screwdriver is perfect), stick it sideways across one of the sprocket teeth and roll the bike till the screwdriver is clamped between the chain and sprocket. Check the adjuster marks to be sure they are the same on both sides, then torque the axle nut. Roll the bike to release the screwdriver, recheck the chain adjustment, if it's right (and it should be) then snug the locknuts down. This has saved me a LOT of aggravation over the years.
 
If you are saying you have that much difference after it's adjusted and everything is tightened down, your chain could be shot. Thats the only time I've seen that is when the chain is worn out. i would get like a wa, wa sound when riding the bike also.
 
Grinder's right, if the chain changes tension as you spin the wheel that's a combination of worn sprockets and worn chain. Unfortunately, the only fix = new chain/sprockets.
 
I'm going to pull off my original 34 sprocket and replace it with a 33 / (17 ft.) If there was a 100 link 530H I removed and on the rear 1/3 of adjusters with that might I be dropping a link or maybe two?
 
On the later bikes with the longer swingarm and chain (104 links), you can't remove any links when going to a 33T sprocket. I don't see why your early model would be any different. But it seems a 98 link chain is called for so yours does sound a bit long. I never count links, just stretch the chain tight and cut where it needs to be. I usually buy aftermarket and they normally come in 10 link increments. That means I get 110's and cut them down. Your P.O. may have purchased a 100 and not bothered to cut it.
 
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I'll price check the even longer ones too (120s, 130s) because in the past sometimes I've found them cheaper than the 110s, don't know why. Maybe they're slower sellers so got discounted? Then that gives me the option of fitting them to some other bike that may require a longer chain. Many of the old bikes I help guys with need a chain so I always like to keep a couple spares on hand.
 
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