02-28-2013, 04:48 PM
The Rear Derailleur (RD) appears to be what you are having an issue with; the shifter is the thing that controls the derailleur, and appears to be handle bar mounted on your bike.
Referring to the lower picture. Remove the rear wheel and set it aside. Loosen the hex screw on the RD's hanger (J shaped stamping) so that the RD can slide into the slot in the bike frame, with the back side flush against the frame. The RD needs to go all the way to the back of the slot, tighten the hex screw to clamp the RD in place.
The washers on the wheel's axle need to go to the outside of the RD on the right side and outside of the frame on the left side.
Referring to the lower picture. Remove the rear wheel and set it aside. Loosen the hex screw on the RD's hanger (J shaped stamping) so that the RD can slide into the slot in the bike frame, with the back side flush against the frame. The RD needs to go all the way to the back of the slot, tighten the hex screw to clamp the RD in place.
The washers on the wheel's axle need to go to the outside of the RD on the right side and outside of the frame on the left side.
Nigel