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Old 12-15-09 | 07:25 PM
  #14  
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Chombi
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Bikes: 1986 Alan Record Carbonio, 1985 Vitus Plus Carbone 7, 1984 Peugeot PSV, 1972 Line Seeker, 1986(est.) Medici Aerodynamic (Project), 1985(est.) Peugeot PY10FC

It looks like you have to remove a spacer similar to part #4 in the Suntour Cyclone exploded diagram posted on this thread shows.
The derailleur upper body at the upper pivot should mount up very close against the dropout with just enough space to still let it freely swing back as most, if not all derailleurs i have used/encountered do, as the placement of your derailleur stop screw seem to also confirm.

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