Well, I pulled this project back out and started working on it again. I am hoping to make the National Pike show and would like to have this finished for it (May 21st). The chain drive works nice and has plenty of power. It is going to be cool to get the chain rotate setup, it should work smoothly.
Here is a video of it working:
http://www.youtube.com/watch?v=ft1fAnn2sIA