specialmonkey

I see a little thing sticking out of the lug, on the top and in towards the gears, is this normal? What is the purpose?

Ex Pres 

Looks like a chain holder for when you remove the wheel.

specialmonkey

Ah thanks, that makes perfect sense.

JohnDThompson 

Yes, that's exactly what it is. Prior to using the cast dropouts, we had to braze a separate hanger onto the stay. The cast dropouts simplified several manufacturing processes for us, besides the integral hanger. It was no longer necessary to chamfer and slot the stays prior to brazing; a simple straight cut was sufficient. No need to drill vent holes in the stays; vents were cast into the dropout itself. No need to grind the dropout tabs to fit the stays; the stays just slipped into the sockets. It was no longer necessary to radius the joint to make it look nice; the radius was cast into the dropout itself. And no need for a cable guide on the chainstay, as the rear derailleur cable was routed internally through the chainstay and exited through the vent hole.

That said, it appears the hanger on the OP's dropout is bent:





Rather than sticking out perpendicular to the stay, it should have a short "J" bend with the open end parallel to the stay.

3speedslow

I was about ready to say...