Easy to throw on a 520 chain if both sprokets are same width, but could well be you have a proper drive sprocket and a narrow chainwheel one...?
By sliding a neat fitting "Zip tie" from the underneath of the bike up between both top and bottom chain links near the drive sprocket I could use a laser to confirm that the alignment between the sprockets is correct. By some sort of miracle it looks like the frame is correctly aligned. I'll gratefully take that one.
Could be false hope Gav- not to say it is, but could look straight point to point, but the light may only bend horizontally, but not vertically..'round the front of the front sprocket......?
Is the chainguard off? It was soon after initially recovering mine, and it was at a good height in the back of my van that I noticed mine was out of whack, and after some investigating deduced it was due to having a chainwheel from a A65- they apparently almost the same ,but not enough- replaced that and thought it fixed- but not to be....
.....as I discovered as previously posted (I think).
You asked how I set it up, so'll tell you- not as hard as it may sound and maybe took less time than it takes to write about it...!
The headache started as I'd used different width rims (WM1/WM2), and only closely guessed the offset(not a problem).
When I did the alignment, it was 'bare bones'- frame/wheels-no tyres/forks and empty engine cases but mostly just the complete dry G/box, no clutch, no guards oil tank, or anything unnecessary.
Made sure the front wheel was centre of forks, and (new) forks straight(not twisted).
Used a couple of bits of pine architrave timber bolted horizontal through the valve holes across the wheels to be 'profiles', and string lines outboard, but close as possible to the bike (equidistant is much easier). All that to resemble a box with parallel sides and in the same horizontal plane.
Used a couple of short spare pushrods in the mainshaft (clutch adjuster removed) to measure back to axle to ensure parallel....and then I started measuring.
I'm fairly confident the interface of the top g'box mount and frame lug are close enough to centre of frame.
There's apparently frame drawings in 'service literature' that may help.
Hope that's a bit of help, I have to go do stuff now-good luck, and hoping it's just the wrong sprocket, but check the front one before a new chain, a chainwheel may be cheaper than wrong chain that you can't use + correct sprocket.
Sorry that got a bit long winded...