Schwinn Windwood with Skyhawk 66cc

My build will be a Schwinn Windwood (Red and White with chrome fenders) with a Skyhawk 66cc engine. The engine was purchased from Spooky Tooth Cycles out of Bisbee, Arizona. They sell all their engines (48cc and 66cc) for $150 + shipping.
The front engine mount on the wide down tube was solved with a bracket from sickbikes.com out of Duval, Washington.
I am having a problem lining up the chain from the rear sprocket with the motor drive gear. The chain will rub the tire and the fender. I have considered installing thinner tires and bending or cutting a notch in the fender.

Thanks Camlifter for you reply.
Yes sometimes the windmills become giant monsters.
Yes I have the srocket dished side out like this ) .
I am still working on the problem.

I am listening.
My rear sprocket is mounted dished side out like this ) .
Don't trim the fender and consider Duro brick tread 26x2.125 tires. I found them online. I will try photos after more attempts at alignment.