2009 Fuji Silhouette Chain problem: HELP!!

[aicabsolut]

I had the same problem but I think I've got it solved.
Is the tail end of the front derailleur a lot higher above the big ring then the front end of the derailleur like the picture below? This is BAD!

I think the entire derailleur was installed too high, and/or the clamp looks to be rotated towards the rear of the bike.

FWIW, I run standard Shimano FDs with compact cranks, and they never flare out that far at the tail end. You should only be able to fit about a penny thickness between the teeth of the big ring and the bottom of the derailleur cage at the front end when the derailleur is shifted to the big ring--just move the derailleur to check this, don't pedal and move the chain. I think it's easiest to see in the trimmed position.

Having the derailleur installed too high will cause a lot of shifting issues.