No the its not a limit screw, it is a chain tension adjust, the limit screws are high and low only.
SORRY ITS A TENSION SCREW just used the wrong word but its nothing to do with the chain
B-Screw Adjustment After setting the L-screw, check the "B-screw" for an adequate setting. The B-screw controls the derailleur body angle, hence the name, B-screw. Shift to the innermost rear cog, which is the largest cog. View the upper pulley relative to the largest cog. If the pulley is rubbing against this cog, tighten the B-screw to increase upper pivot spring tension, which pulls the pulley back and away from the cog. If there is a large gap between the upper pulley and cog, loosen the screw. To find a good setting, loosen the B-screw until the upper pulley begins to rub, then tighten the screw to get clearance.
I saw all the answer to your questions, but looks like none of them are right. Deore is a very good class of Shimano, all you need to do is cutting the hose of the cable attaching to your rear derailleur a bit shorter, that's all.
Cheers.[/Quote]
Thanks for that. I have the same problem and your advice seems more logical.