I have a Blue Kulana - looks like maybe an older model (although I just purchased it 2 months ago). I thought the handlebars were too close as well (this is my first cruiser bike), and I just ordered the lay-back seat post from Spooky to let me move the seat back a few inches. For now, I just have the seat taller and that fixed the knee problem...
Sure wish this bike came with some suspension...I also bought the springer forks from Spooky, the 2-sided kickstand, and the bearing chain tensioner and upgraded clutch handle from Dax.
I never changed out forks, so should be fun for me. Anything I need to know about?
Thanks,
Mark