Too small in height? That seems odd as most of the axles are standardized. Sometimes a dropout will get crushed and needs straightening, but that would also affect your old wheels. And, of course, that would be uncommon with vertical dropouts.

If it is too narrow between dropouts, there are a couple of width standards. Don't mess with the dropouts, but perhaps you can change spacers on your wheels, at least on some of the older wheels. You could also replace the rear hub, but it can be a pain to re-lace a set of wheels.

 

Usually, dropouts can be spread, on steel frames, to accommodate a wider hub. Your frame probably takes a 126mm axle and you need to insert a 130. You can Google this. I've done my own old frame and they sometimes take a "cold set" quite well - you can grab both dropouts and using lots of strength, try to pull them apart. Actually, it's best to pull on one and push on the other. You don't need to get the full 4mm as it's possible to get the wheel in with the dropouts on the tight side.

 

If you mean the dropout slot is too narrow, then it may have been bent at some point. It would be best to have a shop bend the slot to open it up slightly, particularly if you're not sure what you're doing. Filing the slot wider to accommodate the axle is not the way to go.

If you mean the width between the dropouts is too narrow for the wheel to fit, then the rear end of the bike needs to be spread wider. This can be done if the frame is steel. All other materials, I wouldn't try to bend. You can perform this task yourself.

 

I googled a Giordano 1.6 and found these links:
https://forums.roadbikereview.com/beginners-corner/giordano-libero-1-6-a-303914.html
Giordano Bikes
Looks that the frame is aluminum, and the wheels are 130mm, based on the spec and that someone's put R500 wheels on theirs.
The specs all claim a 2300 2x8-speed drivetrain, so I am not sure why people insist that it's 7-speeds.

Is this the bike you meant?

Did you have trouble taking the wheel off? If something really is bent, you would likely notice while riding.
It's hard to figure what's wrong from the internet. Can you show us a picture of the dropout area?

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Hopefully it's just this: On my bikes that have quick-release spindles, I have to take the drive side nut off the axle to install the wheel, or it doesn't go past the derailleur, then have to put the nut back on. Maybe you do too?

 

?..snipped...

Hopefully it's just this: On my bikes that have quick-release spindles, I have to take the drive side nut off the axle to install the wheel, or it doesn't go past the derailleur, then have to put the nut back on. Maybe you do too?

^this^ is not an uncommon problem.

Try removing the quick-release and trying to install the the rear wheel. If that's successful, then you'll have to do as .je suggested; taking the QR nut off when you have to install the wheel. And as others have said, make sure the QR springs are oriented correctly.

 

Check and see if both skewer springs are on correctly. The small end of the spring goes against the axle ends. If the springs are reversed, the large end of the spring sometimes wraps itself around the axle and prevents the axle from going into the dropout. If you don't notice this common screw-up, you may think the dropout is too small when in fact, it's not.

 

^ This is what I was just going to suggest^

 

There dropouts are not 2 narrow, your wheel is 2 wide. You have a 7 (?) speed bike, it that is aluminum, get a 7 speed wheel and a triple. Or as most here claim, get a 53/39 and be a real man.

 

The dropouts themselves are too narrow. I've added a photo to clarify on my first initial post.

-ES

 

I did post a photo just now. Hopefully it'll help!

 

what's a "ralph wheelset"?

post a pic of the hub not going into the dropout.

which looks fine.

 

The problem is that the derailleur hanger slot doesn't line up with the frame's dropout slot. The silver derailleur hanger needs to be rotated counter-clockwise a few degrees so its slot can line up with the frame's dropout slot. But it looks like a gob of paint or some sloppy machining might keep you from doing that. Nevertheless, loosen the bolt that holds the hanger on just a bit and try to rotate the hanger counter-clockwise so the slots are lined up. Then tighten the bolt again.

If you can't line up the slots, it's time to scrape some paint or carefully file away a bit of material.

 

If you look from the other side of the frame (NDS) and see the reverse effect (extra hanger material), why not file a little of the hanger away instead of filing the dropout?

 

View attachment 296826
That is really off. The triangular corner piece is a die-stamped part, the hanger is a die-stamped part, probably without any secondary die operations... so I don't understand why a part's features all off the same die would be so far from design (not the frame pieces being fixtured badly and chainstays then welded to them). By the sounds of the above post (#14), is this really the same frame as the GMC Denali and CCM Presto and Avenue, & Supercycle Medalist and Tempo? They sell tens of thousands of those every year for many years, they couldn't have all the parts that come off the tools like that.

I think the only thing to do is take material off the hanger, which won't affect the integrity IMO. It looks from your picture that the axle is being located to that position by the frame's corner piece (the dropout).

 

....is this really the same frame as the GMC Denali and CCM Presto and Avenue, & Supercycle Medalist and Tempo? They sell tens of thousands of those every year for many years, they couldn't have all the parts that come off the tools like that.\

It's not the same frame, but consider that this misalignment issue didn't make itself known until the OP tried to put a quick-release axle into the dropouts. Point being: this bike came with a solid axle and axle nuts, which tells you something about its provenance.

 

No one here can say where material needs to be removed w/ any certainty because we have no idea how the wheel is or will sit in the frame. The wheel has to be aligned, so if material needs to be removed it has to be done to ensure that above all else.

That said, what's it look like from the other side?

 

Actually the hanger, on the opposite end, is inline with the dropout. Yay craftsmanship.

 

Thanks for the clarification of where it is tight.

I'm still a bit surprised that the old wheel fit, but the new one did not as I thought the axle sizes were generally standardized.

I would advise caution. In theory, you can replace the derailleur hanger, but you can't replace the frame. You have very little fine "adjustment" with vertical dropouts.

Perhaps remove the derailleur and derailleur hanger, and see if it all fits together with the wheel straight. If it all works, then use the aluminum part of the dropout to guide your touching up the hanger.

 

I'm still a bit surprised that the old wheel fit, but the new one did not as I thought the axle sizes were generally standardized.

Not across the board. Department store bikes often come with 3/8" diameter axles, which is just a tad smaller than the 10 mm rear axle standard.

 

Silly question maybe. When inserting the new wheel, was it just a matter of the skewer not seating in the dropouts? Perhaps you just need to apply a little more force to the wheel to get it to seat (I have this problem with my MTB, takes a good hit to seat the skewer in the dropout). I'd also suggest inserting the wheel without the skewer, then insert skewer through the dropout-wheel-dropout, and see if it works.

 

Thanks Everyone! I fixed it. There was too much powder coating and paint on the frame. And with a file, the hanger and dropout were filed down too.