It also looks to me like the cage is bent so that the pulleys are not in line with each other. That can be remedied, but a shop could charge as much as for a derailleur. If the derailleur itself is twisted replace it. There are too many angles in my view - and in my experience - to be worth attempting to get right again.
Last edited by cny-bikeman; 08-21-13 at 05:21 AM.