Joined: Dec 2011
Posts: 2,519
Likes: 18
From: Fort Worth, Texas
Bikes: 2000 Bianchi Veloce, '88 Schwinn Prologue, '90 Bianchi Volpe,'94 Yokota Grizzly Peak, Yokota Enterprise, '16 Diamondback Haanjo, '91 Bianchi Boardwalk, Ellsworth cruiser
Judging from what I can see of the stays and dropout, this photo appears to be upside down and the derailleur is in the right positon. What chainring is it on in the front? If this bike has a triple and you have it in the small front ring and small back cog, then there is just too much slack for the derailleur to take up and you need to be on the middle ring.