It does have a lot of play going in towards the underside of the bike.

 

Grasp the lower half of the chain, halfway between both sprockets. Pull straight down on it and then push straight up. Between those two extremes there should be approximately 1-1.25" of freeplay. Does yours have more than that?

 

So after Mother Nature caused me to be displaced from my home I've finally been able to give my bike the attention she deserves. I tried replacing just the spring for the side stand it it did not change the sitting position. So I went to eBay and bought a complete used sidestand. And now everything sits correctly. I imagine the issue was with something in the pivot point of the side stand as it would continue to far and allow the contact between chain and sidestand. Next project will be replacing the chain as it has warn and unfortunately now has some rust on it

 

Chain could do with some oil.

 

Before you go buying a new chain (and sprockets!) give it a good clean with a brush and some paraffin. Wipe it dry and then adjust it so that the lower chain run at it's tightest point is between 1" and 1 1/2" in total up and down movement. Now pull the chain on the rear sprocket towards the rear of the wheel and see if you get any appreciable movement away from the teeth of the sprocket. If not then the chain is ok. Lubricate it with Gear Oil EP 80w/90 using a brush on the lower run of the chain getting the oil into the side plates and pins. No need for expensive chain oil as Honda recommend using Gear Oil in their manuals. It is an extreme pressure oil so is great for motorcycles providing you put it on regularly.

 

That things been deflecting off the kickstand for who knows how long, common sense and safety would dictate replacing it asap.