A word of engineering input here:
First: the battery ground lug goes between the left-side frame bolster and the engine, at the top of the engine, by the chain. This sets the proer width of the front side of this section of the frame. This thickness is important, here's why:
The frame system on this bike is a 'loaded rhombus' center strut design. In non-engineering terms: the engine's side of the frame is tighter than the swingarm's side of the frame in the middle of the frame so as to prestress the center of the whole assembly tightly. This is normal, and needed, to reduce flexing in the middle of the frame, which would give (and does) the bike a sensation of having a 'hinge' below your butt when cornering and flipping the bike side-to-side at speed. So, do NOT shim the engine side to loosen up the swingarm: that's not good, nor the right thing to do.
Normally the swingarms are stiff upon rebuild, for several hundred to a thousand miles or so. When the bikes were brand-new the swingarms did not drop under their own weight: they were quite stiff for several hundred miles. That is normal for a plain-bearing, near-interference fit.