As far as I know the chain was on right? It worked fine on my old setup but that was 24-11, now using 20-9 and it just doesn't seem to handle going around the 9 tooth freecoaster cog very well. I replaced it with a regular chain but if I get the chance I'll put it back on and take a photo/video.
I'm not planning on removing the compression bolt, was just curious what most other riders do.
As far as the seat post goes, I'm gonna cut off a little bit so that I can get the seat a little lower as it's already bottomed out but I wanna go a bit lower. I'm not going crazy and cutting off as much as possible, probably just and inch or two. But was curious what you guys aim for as far as how much length you try to leave below the clamp.