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Thanks guys, this is exactly what I was hoping to get feedback from a few guys with this experience and an engine builder that has seen this type of problem. The head tech at my dealer is tearing into tomorrow, I will pass this information along to him. I already told them that if they found the compensator is shot to hold off ordering parts I want to upgrade to the SE Heavy duty. Hopefully they will do the upgrade for the price differential between replacing the stock unit and the upgraded SE unit.
You might consider going for the SE or aftermarket primary chain adjuster while you are in there, for peace of mind. That was my plan but was stuck up in Homer and had no SE parts available. BTW have to give a shout out to Soldotna HD, the kid worked on my bike til 830 PM to get me back on the road, had to cannibalize parts too, all under warranty, great dealer, cant say enough.
I believe I read that there were some issues with a few bikes here on the forum,I will change out just to be sure. Disclaimer, everything I know about being a harley mechanic I learn here on this forum and in the HD maint manual.
Very few issues with the new design from what I've read. Most don't go to gear drive cams when upgrading because it isn't necessary. The 06 Dynas have the new set up as well.