The teeth on the cog are definitely starting to look pointy. The chainring is relatively new, and the teeth look pretty good. To give some perspective on the cog, it came with the rear wheel, so it is probably the cheapest 1/8" cog in existence. When I get a chance, i'll take a picture with a decent camera.

As far as picking up the chain, I can lift it off the chainring, but not above the teeth on the chainring if that makes a difference.

Dave