Here is an update with my build on the Phat Cycles cruiser aka Finicky Bastard. I replaced the wider 2.125 tires with 26x1.95 hopefully this will fix the rubbing problem. Just got my hub mounted sprocket adapter, 40 tooth sprocket and motor shims in the mail. I should be getting the #41 chain this week. Going to mount everything up, replace both chains, shim it and take out links to take up slack and hopefully we will be good to go. Will post pics and keep you guys updated.
