Ok, well... lets see.
I'm making slow progress, haven't fired'er up yet, but getting closer..
I think I've found the solution to my clearance problem. Coaster brake extension from Spookytooth. I used washers to space the sprocket out further, so that the chain would clear the tire. I'm going to cut the fender. The extension will make it so the brake arm clears the bolts no problem, then I'll space the frame out a little bit.
so, I'm waiting on that, but in the meantime I did a couple other things. I relocated the CDI to the seatpost, installed a new bosch plug wire, connected, and taped all the wires. I was using the CDI mount as a cableguide for the clutch cable, and now that its not there, I may have to shorten or reroute the cable.
I still have a lot of work to do, but it should be at least operational soon.
Here are some BEFORE pictures: