you might want to loosen it up a bit to a little
over 1". I've found it's better to be too loose than too tight. good o-ring chains don't seem to stretch much, so you might be tight for a long time... bad for output shaft and rear wheel bearings. also, rotate the chain to find the tightest spot and then measure the slack. It's not consistent along the entire chain... there are tight and loose spots, so gauge the 1" off the tightest spot you can find.
how did you realign the rear wheel? I hope you didn't just go by the hash marks on those adjuster plates.
