Small Engines (Lawn Mowers, etc.): McCulloch Chain Replacement, replacement model, slack

Question
model is a MS1635 I can not figure out how to take up the slack in the chain once it is in position with what appears to be the tensioning screw.  Also there is some type of clip/washer I can't figure out where it goes.  I'm not sure what it is I'm doing wrong if you could help me or even direct to a online manual with pictures that would be helpful too.

Answer
It is difficult to say where the clip/washer goes.  Does the clip/wahser look large enough to fit over the clutch/sporcket shaft?

Is the chain adjuster nut working correctly?  Sometimes the threads strip out or the bar adjuster nut cracks.  Is the chain the correct length or has it stretched too much?

Install the bar and chain with the side cover off.  Ensure the bar nut engages the bar then tighten the adjuster screw to see if it moves the bar and tightens the chain.
Let me know what happens.
Eric