I have been having problems with the chain not catching on the freewheel. It just stops in between the gears and just slips. The chain is new and the freewheel does not have many miles on it at all. The chain seems like it might be a issue but its just a standard 8 speed chain.

I really need to take care of this problem before it kills me.

That's an old-style 5-speed freewheel. Even a "normal 8-speed chain" is designed for cog spacing tighter than that freewheel provides. You need a - what's the dimension again - 1/8" chain? Like maybe a fixie chain? Edit: 3/32", as more erudite posters point out below...

Alternately, a closer-spaced freewheel, like an Ultra-6, would help.

I don't think you need a track chain, but rather a standard old-style 3/8" chain for 5- to 7-speeds. All the newer cogs and chains are too narrow for your setup. Oops, make that 3/32"...

A 5-spd FW takes a 3/32 chain.

I thought I had read someone post on this forum that a 7 speed SRAM chain, or similar, improves shifting on some old 5 speed freewheels. No?

When I bought the chain it was just the same old SRAM I run on everything. I guess I learned my lesson on that.

I'm using the same chain on the same bike. That freewheel sucks. HG is the answer.

This is assuming there are no issues with your shifters, cables or rear derailleur.