Join Date: Dec 2005
Location: Charlottesville, Virginia
Bikes: Dawes Kalahari, Puch Prima Super Sport, Graham Weigh 853
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You sometimes have to do extra set up work on mail order bikes. Do you have an Edinburgh Cycle Cooperative nearby? They would be a good place to go for help.
You should be able to get a new bike out of them, since the derailleur problem was caused either by the derailleur being bent, or by the limit screws being incorrectly set up.
If you wanted to save hassle, a local bike shop could probably fix the wheel for a tenner, and sort out the rear mech for a fiver.