Fundamental design flaw of '07 thru '10 Compensator
As removed:

The various components:

Left to right: 3368 Screw, 6445 Washer, 40297-06 Shaft Extension, 40333-06A Cam Slider, 40356-07 Rotor & Spring Cover Assembly, 40320-06 Compensating Sprocket
It's important to understand how the design is supposed to work. Here's what I believe to be the case:
The only component that is supposed to move horizontally in line with the drive shaft is the "Cam Slider". As torque is applied to the shaft the mass of the motorcycle resists motion. This results in the sprocket pushing the Cam Slider into the spring assembly. As the torque begins to equalize the spring, pushing back on the Cam Slider should cause the Cam Slider to move back out along the splines of the Shaft Extension.

Shaft Extension mating with Cam Slider, sprocket not shown

Shaft Extension and Cam Slider
Unfortunately there is too much surface area in contact between the Shaft Extension and the Cam Slider. Furthermore the fit between the two parts is too tight, particularly if the spring is fully compressed and the Cam Slider pushes far enough into the spring assembly which will happen under highest torque differential. As the parts wear damage to the mating surfaces can and does occur. This damage can actually increase the friction between the parts. The static friction is such that the parts do not slide freely but instead bind. A large torque differential is required to cause the parts to "break free" of one another.

Damage to Shaft Extension spline

Damage to Cam Slider spline

Sprocket showing impact damage. The breaking free results in impact damage to the Sprocket. Note the impact damage to the outer surface of the sprocket also suggests the sprocket has moved laterally which would put lateral strain on the primary chain leading to accelerated wear.
The wear on these parts resulted from 6,500 miles of use on a 2010 Limited. I highly recommend that everyone who has not already done so replace this part with the SE Compensator. Will the part fail you? Chances are no. Will the part result in unnecessary wear on other drive train components? Probably. Will the riding experience be improved? Definitely.
Last edited by davessworks; Oct 28, 2010 at 10:49 PM.

(Actually, when I swapped out my 5spd gearset for a Baker DD6, they included their own compensator.)
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It was the compenstor, everything else was fine. The compensator was still within specs, but just barely and the amount of slop was very noticeable. I was not aware of the SE compensator at that time and do not know if that is what was installed. I have since traded the bike.
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