Jerry you are correct on a lot of that.
Here is what I did so far. I backed out studs 3/8, but I will go back to about 1/2 that.
We cut the steel rear sprocket down on the inside, down to .22 thick from .350 or so
Cut it back 1.2 to 1.25 from sprocket bore. This allows locktabs.
I may take .10 off the stock nuts
Made alloy spacers to move sprocket out, .39 thick, 1.2 dia, 31/64 hole thru middle.
This should work with aftermarket shocks and after market or shop Made chainguard notched for the shock.
The bad thing, is I probably havevto grind the weld seam off the very end of the swingarm, only about 3/4 of an inch, and just to the sides of swingarm.... so basically , a little bit of the seam.
One other glitch , the sprocket no longer centers on its shoulder. If that becomes a problem, I will chuck it in the lathe, turn the shoulder true, and make a small sleeve.