Assuming when you say 1st and 2nd cogs you mean 1st and 2nd gear? Some folk get this stuff mixed up. Maybe you need to try to mount the derailleur without the hanger, some were never intended to use a hanger like mine. Also when you monted the derailleur did you rotate it fully clockwise till it stopped then threaded the mounting bolt? And when tightening the mounting bolt did you rotate the derailleur fully counterclockwise when the bolt was being secured? If not you could damage the derailleur or the hanger but probably not likely.
Do you get a chattering noise when in the smallest cog? if so you need to readjust your H screw.
Last edited by froze; 05-05-07 at 10:09 PM.