Ok, I put the tire back on today. Picked up the back of the bike and spun the pedals until it shifted onto the middle chainring up front. Decided I would just stay in this ring and ride it and see if it rode fine in this chainring only. And so I could take pics for you guys.
I did shift cogs in the back though, starting with the smallest and ending with the one you see. I took pics also of the chain routing and everything I could so that you could tell me wether you still think the chain is too short.
I didn't want to try shifting to the big chainring until I could get y'all's opinion on the chain, etc. The bike rode fine in the few gears I switched to.
this pic shows the gear indicator on the handlebars.
rear cogs/derailleur from the top:
rear from the side:
bike chain routing from the side:
So, does it still seem like the chain is too short? I'm going to try shifting to the big chainring tomorrow.
Your chain is way too short. You are on the middle ring in front and what appears in the fuzzy picture to be about the third smallest rear cog. You can see that your rear derailler is already pretty stretched out. It should probably be vertical, if not pointed slightly back in this combination.
I suspect the original owner may have dropped the chain from the idler above the front wheel. This would introduce significant slack in the chain and may allow proper shifting. If the original owner did this, he would have shortened the chain. when he hooked the chain back up to the idler he didn't restore the chain to the proper length.
Go get your chain length adjusted. Any LBS can do it.