holy crap!!!
does not look very safe, i have had some experience with almost the same thing... the tree that was in question was the same as this one (pecan) and the chain was 3/8 logging... it was installed years earlier and when we were called the chain was completely rusted through... i don't know how the lead was still standing.... we had to remove the tree..... the system failed during a wind storm, our clint heard the chain break.
i think that you need to replace the chain with some correctly installed hardware.... this might prolong the tree's life... be carefull when you remove the old system, put the new one in first (i know, but i just had to say it)
Rob
p.s. Matt, glad that you finally joined up! see you in B'ham!