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Bikes: 748S, HM1100S, V4SP, Was: DD-A #111
Posts: 13,088
Join Date: Feb 2002
Location: Back in Essex
Mood: Passion Killer
Common problem, had it on mine (and posted about it here) many years ago.
You need to upgrade to the 998 style sprocket flange which does away with the circlip and uses a spacer instead. That way it doesn't wear and doesn't grind your hub away either. It even works with hubs that have been worn already.
Have a search for "sprocket flange" as it should give you lots of results.