Technical Information - Chain
Type
Heavy duty 530 O-ring type chain is highly recommended. Tsubaki 530/Sigma and RK-530/XSO are recommended brands/models.
Installation
The standard/simpler method of chain installation is to use a
clipped master link. Similar to those used on bicycles, the master link is one
in which one side plate is not present until installed. The master link (a
single side plate with two posts) is slid through the holes in the
appropriately sized chain's end links. Then the "missing side plate"
is slid on the opposite side of the master with some force, then a clip is
snapped into machined grooves in the shafts. The clip retains the added side
plate and should be installed with the open end facing outward. This reduces
the chance of loosing the clip with the motion of the chain. It is also
recommended that you safety wire and silicon the clip in place to increase the
time in which it is likely to stay on. If the clip does come off, the added
side plate can stay in place for a short time just with its retaining force on
the master link's posts.
The second option is to use a riveted master link. Installation is similar
until the retention of the "missing side plate" is reached. In this
case, the added side plate is put in place, and retained by spreading or
flattening the ends of the shafts. This can be done two ways.
1) The ends of the master link shafts can be hammered down on an anvil in a riveting
action. The flattened shafts retain the master link's side similar to the
original chains.
2) A special riveting tool can be used.
This drives a pin into the center of the shaft end, which spreads the shaft,
"tulliping" the end.
This method has the advantage of not having to be done off the car. Motion Pro makes
good chain tools; both a heavy duty chain breaker ($27 through Dennis
Kirk catalog)
to drive out the pins
, and a pin riveter
kit 
($96 also through Dennis Kirk).
In either case, there is no clip to worry about leaving the chain.
Tension
The tension on the chain should be adjusted to only allow slight slack between the sprockets. If the chain is pressed inward on the top or bottom (and allowed to go tight on the opposite side) between the sprockets, it should not exceed 1/4 of an inch past the tangential line connecting the outer edges of the sprockets. The chain should be rotated completed through its path while you look for tight spots. The slack mentioned above should the amount felt and the tightest location.
Alignment
The sprockets should be aligned with respect to each other such that they are in the same plane, so that the chain does not twist. Also, when the sprockets are rotated quickly, the chain should run freely with minimal drift to either side of the chain link's shafts. This will ensure minimal side force on the side plates of the chain.