Ok, I must be brain dead...

Here's where the Italvega stands now:



The freewheel is 14-23, 52/42 chainrings. Well within all the acceptable limits for NR RDs from what I read.

In trying to setup the RD I'm running into a couple of problems:

1) If I have enough chain for big-big + 2 it's very slack in little-little, like 3-4 links slack.

2) If I have it at a higher chain angle like 52/23 or one down, the chain rubs inside the pulley cage at the lower jockey wheel. Furthermore the chain seems to dance around the pulleys a lot, as if there's not enough of a tooth to properly capture the chain.

Here's the RD:





Questions:

1) I'm using a 6 speed KMC chain in really nice shape...should I use something different?
2) Is there a trick to setting these guys up over a Suntour RD that I'm just missing?
3) The pulleys have a little wear but every NR RD I see seems to have that tooth profile...are these "normal"?

Thanks!