Check the teeth on the gears for extremely worn or actually missing teeth. I can't think of anything else that would cause that thing to jump and bounce like that. The tensioner is trying to do it's job, it's just that something is causing the slack to fluctuate pretty wildly. I'd think that it should operate pretty smoothly. That is not smooth.
One other thing I wanted to ask: Does that tensioner use oil to keep pressure on the chain? If so, it might not smooth up until the engine has been run, or you've pumped the tensioner up with oil.
Last edited by brhodes; 11-11-2011 at 12:22 AM.