Rigid Body objects aren't solid enough?

My project consists of chains and sprockets. Unfortunately the chain no matter what I do ends up out of sync with the teeth on the large sprocket because the teeth insist on passing through the chain to various degrees. Changing settings to far one way or another causes everything to fly apart. Does anyone know the magical setting to get this thing to work? Or is Blender just not capable of doing this?

EDIT: This site refuses to show my blend after uploading.

One of the usual problems is that the initial meshes intersect. Go through the objects and make sure there is a small gap between each of the components.
It usually takes a few posts before you can upload. Try using mediafire or one of the other filesharing sites.

blender may not be able to do this, i know it is a pain in the but with gears. you may be able to use a transform constraint with a curve and the gears, making it that way when the main gear rotates it moves the chain on the curve accordingly then have another constraint that change the motion of the chain into the rotating of the second gear.

hope this helps at least a little:)