For sh*ts and giggles, here's a pic of what it looked like when I removed the side cover. There were spiderwebs, dead bugs, and a crapload of dirt. You can also see that I totally stripped the sprocket.
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Here's a pic with the new sprocket; you can see the grooves cut by the old chain, probably when it started whipping and stripping the sprocket.
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The grooved area is the only place in danger of grinding from what I can tell; if anything I think it might get a little deeper. I could also put the clip-on master link facing the outside, avoiding a run-in with the crankcase. I dunno.
Ding ding ding you win the prize. That is by far the worst CS sprocket I've ever seen!
And yes the clip goes on the outside, facing away from the engine.
I won't comment on that grinding scar, ig its in a bad area, you need someone who knows for sure.
