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What is wrong with my chain/gears
Hello. I am by no means an expert when it comes to bikes but I bought this bike from a friend for 40$. Its a peugeot. I thought I had fixed the problem with the chain and gears but alas it's still broken. The chain will fall off when I switch gears or pedal backwards. Also, the tension in the chain is very low and clanks up against the metal. Hopefully you can see whats up from the pictures. Thanks in advance.
wrong angle on the pictures, would like to see one directly from the rear of the relationship of the derailleur angle to the wheel/ground.
I would say with out a doubt that the rear derailleur hanger is out of alignment. which means more than likely your H/L limit screws will be off too. This requires a DAG tool to correct. they cost a bit but worth every penny. Number one tool for multispeed cycles and if you do use one or own one and claim you are good with bikes.. well you know, thats all there is to it. Buy one or take it to the LBS.
There are two kinds of people in the world, "Those who help themselves to people, and those who help people!"
Where does the chain fall off is a big question that will help us give you a better answer.

If the chain sags a lot on the long runs from the front to the rear gears, it may be time for a new rear derailleur. The springs in it could be played out and it's not holding tension on the chain well anymore. ~ $15 part.
Thanks guys. Appreciate the help. Let me get some better pics for you. Also, I don't know what any of these parts are... I will try and look them up. And I will see where the chain falls off
One thing that I noticde in the top picture is that the axle is not set back far enough in the dropouts. This could be causing sag in the chain.
Here is one from the back
It is hard to judge by eye, but the dérailleur hanger seems bent (painkiller?)

Chain drop can be caused by several factors: misalignment (of both dérailleurs), worn chain rings, stiff chain link, weak rear dérailleur spring...
I'd take a close look at the chain. Turn the cranks backward by hand and observe the chain closely where it threads through the rear dérailleur.
way out! and as mentioned above, if your dropouts are true, get wheel back further
There are two kinds of people in the world, "Those who help themselves to people, and those who help people!"
Agree with the derailer looking bent. Also derailer looks awful straightened out for being in the middle of gear set. Is the chain correct length? Is the chain 1/8 or 3/16?

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