I checked and everything seems as it should be. Things are tight. What I did notice, however, is that the sprocket assembly (closest to the engine mounted on a plate) seems to be cockeyed. I tried loosening the plate and prying it outwards but it did not seem to help. I also tried tapping the plate up because it looked like it had fallen down into the groove a little bit. Neither attempt helped.
I did start it up and try to drive it and the chain fell right off like I thought it would. I am wondering that when I was trying to get it out of that little dip if the hydrostat on that side moved backwards a little causing the whole thing to come out of alignment. Since the back sprocket assembly is attached to a plate that is attached to the frame of the hydrostat, I am thinking this is a possibility. I looked on the underside where the bolts are that holds it down and it looks like it was moved recently. In my mind, it seems that the direction it moved (forwards) would have made the angle of the sprocket assembly in the back push outward rather than inward like it is now. Also, I saw the axle itself is bolted into place underneath, which is also attached to the hydrostat. I did not see any movement there, but my view was not the greatest either.
Any ideas on where to go from here? I can take pictures or video to show you what I am talking about too if you think that will help.