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"the freewheel packed up" well, is there any way that a slipping pawl could have cause the problems that you have had ??
I (almost) always remove freewheels using the "destructive" method, as in removing the front plate, taking off the cogs, pawls and balls. Then removing the body using Stilsons and bolts wedged where the pawls would be. The problem is that the 2 tooth block remover, as shown often breaks, or breaks the body, before the threads give. It also gives a good opportunity to clean, examine, rebuild the freewheel mechanism.
From here, the inner plates of that chain look to be too close for the teeth on the block !?
It looks fine but unfortunately it has made no difference at all, the chain is still not engaging with the freewheel properly and to top it off while I was out on a test run earlier the freewheel packed up completely and I had no drive at all.
So I had to walk home albeit not far.
I'm now on the hunt for a freewheel, 5 speed.
I'm going to wait for something decent though as I've been stung before buying second hand freewheels that look great on the outside but totally knackered within.
@clubman it would be great to hear about these bikes being raced back in the day, perhaps a couple of photos too.