I was sent a private message for more info, but I don't have enough posts. So, here goes:
I don't have a lot of experience with indexed shifting to compare it to, but it seems to work fine. One click changes the gear. It is a shimano freewheel from Amazon - a 28 tooth 7 speed tourney. The chain was a seven speed chain I had in the stash. KLH? The rear derailleur is a shimano light action. I think it might actually predate SIS, but I'm not sure. The seller said it had the same pull as newer derailleurs and it works. Would it work with a bigger freewheel? I don't know. I recently had a deore LX derailleur fall into my hands. If the bigger freewheel appears cheap enough, I might try it.