I am restoring a girls Astro Daimler bicycle and came across and interesting problem. It is a three speed derailleur model with a coaster brake. I was re assembling the bike and found that there is an item that was hanging off the chain when I got the bike so I am not sure what it is for nor do I know the position it should be in. You can see it in the link I am attaching. The item in question is in my hand in one of the photos. I am not sure where to place it. Should it go on the chain stay facing up or down and how far back. I am sure it goes on the chain stay somewhere because it was on the chain and the nut and bolt are frozen so it was not placed there recently. Any help in identifying and placing the item would be appreciated. I first tried to put it facing down but the chain rubs on it and I could not figure what purpose that would serve. This is a Steyr derailleur in case you were wondering.
http://f1.pg.photos.yahoo.com/
Ray Homiski
Elizabeth, NJ