According to SRAM the distance between the Rear mech top pulley and the bottom of the largest cog should be 6mm. Problem is to get to about 10m,m distance i need to have the B Stop screwed all the way out?
Chain is on largest cog on back and smallest chainring

Any advice on what's wrong folks?

Chain too long?

Unusual stop position on the hanger on the frame?

Something bent in the mech?

Road cassette with mtb mech?

Thanks for the advice clubber. I've just measured the chain according the SRAm tech manual and it looks to be too short! When the shock is out of air and full;y compressed the chain (when split) doesn't meet?

Well that doesn't sound good though unless you ride in big big enough to stand a chance of bottoming it out a the same time maybe it's not really an issue.