In simple terms anything more than +/- 1mm will increase drive train noise and more significantly increase wear on components (the noise being caused by bits rubbing together more of course). If you are running a beater and are mechanically insensitive then as long as your chain isn't slack enough to climb off the sprocket it's fine. If you've spent a load of hard-earned on a top notch drive train then it would be a waste not to get it dialled in, because you are just throwing cash away on rapid wear of components and also not getting the benefits of the extra quality. At the very least you will be going through chains faster. Finally, if you are using it competitively you will be wasting valuable watts wearing out your expensive drive train.
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