Everything about your design looks great, I don't see why it wouldn't work. I think the reason it didn't is because the RPM of the rotor is to low due to the pulley reduction. The rotor just needs to spin a lot faster in order to properly eject the chips. The rotor should spin at like ~3000 rpm I think for optimal results. I would also test it with the discharge chute off to make sure that wasn't the issue. The blades need to be grooved to reduce friction between the cutting edge and wood so that the chips easily fly off. Then you need to create a turbine like structure in the other side of wheel with light weight flaps so that there is an impeller effect which will drawn in wind and throw it alongwith the chips in the outside. It'll be very interesting to see why the last project you showed here didn't work out as planned. I was expecting to see something wacky in the design but when you opened it up it looked to me like it should have worked. I'm stumped, the cutters looked as though they were inline with the exit chute and rotated in the direction to expel the wood chips, I'm curious about that one, has me scratching my head. The first one you showed making is fantastic.