Harry's the only one close so far IMHO ...
Clean the chain with paraffin or kerosine, use an old nail brush or some other stiff brush to get the claggy old lube out from between the sideplates - don't be tempted to use a wire brush otherwise you'll fook up the o-rings (if any are left). If the chain's really gritty, then you could use a degreaser and a hosepipe to knock the solid sh!t off ... then dry it with an old towel or rag - don't use your missus's tea-towels, she'll be p!ssed off if you do - DAMHIKT!
By now you chain will be clean and shiny and possibly a little bit rattly and dry, so lube it up while it's loose with a quality chain lube like BelRay - personally I'd steer away from the 'wax' lubes and stuck with a goold old grease/oil based preparation.
Once the chain's lubed again, you can set to adjusting it. If the chain's been on the bike for a few miles, then it will probably have worn a little bit, which shows itself as slackness in the chain - if you're lucky it it even aloing the chain's length, but usually it will wear more in one point (sometimes due to sprocket ratios) which will make it more slack in one section. Check this by raising the rear wheel off the ground and turning it while pushing up on the lower chain run - don't use the engine to do this!! If the chain is unevenly worn then you'll find a 'tight spot' which is where you'll need to measure the slack for correct adjustment (if you measure slack when it's at its loosest point then it will be too tight at the tight spot) Get it so far?
Check the manual, but the plate on the guard says 35-45mm slack, I've had it on the centre stand to adjust it, and assume that if you do it on the side stand, then you'll have to lift it a little to relieve the load on the shock. So, turn the wheel so that the chain is at its tightest point, loosen the axle nut and the adjuster lock nuts, then use the adjuster bolt to push the axle backwards which will tighten the chain - you might be surprised at how little adjustment is needed...
Tighten the adjuster lock-nut and push the wheel hard forward against the adjuster as you tighten the axle nut. Check for correct tension again and re-adjust if necessary.
If the chain is still excessively loose at it's slackest point when correctly adjusted at the tight spot, then it's knackered and needs replacing.
A correctly adjusted Scottoiler is great here too....
G