Thanks for the replies and the confirmation on how it is installed. I know I had it right. And the chain was brand new! Including the ML, and clip. Had no more than 150 miles ridden...Hmm, I think I just forgot to check the tightness of it before I rode off with it. Or maybe it wasn't well oiled. Maybe the clip was just fractured or not all the way on...It was my first ride of the season, I guess I was a little excited. Should have checked those things.
I did order a replacement 530 ML, I'm going to put it back on and ride it around. Oil the chain real good, check for proper tightness, and for now on I think I would be a little paranoid NOT to check that MC every time before I ride.
So I'm going with the assumption the cracks in the case and chain guide on the sprocket cover are no big worry?