I think I have it, the pedals move very very very little before the chain catches but they still do move and there is still visible sag in the chain.

I was thinking about adding a freewheel for my ride to school since it is much longer and has a lot more hills to deal with. Currently its a 16/39 setup. Would a 15t freewheel work good? I could get away with the extra gear inches since I wont be spinning down hills. ?