BiMoPed, has some good suggestions there, smaller sprocket would lower the position of the chain, and like he said you can take the rear mount and cut maybe 1/4" of an inch off the back side which would allow the engine to sit lower as well, NOW...... if you do this mod. you must make sure that the cut is very straight and even so the mounting block will sit flush back with the engine block, if not it will stress the studs and cause them to break under load & vibrasion.
I know the frustration you are going through on this because I was there once myself with a bike that just had things against it as for as motorizing it, it too was a Schwinn and I still have it, but I stripped it down and used the front suspension and a few other things to build another bike that had a much more user friendly frame, the Schwinn Comfort Bike was causing me way to much trouble.
As far as custom mounts go....normally they are used when we have too much room and need to/or can reach out to the front down tube, but in your case you dont have enough room and that pretty much rules out a set of custom mounts because they require more room than you have to work with and would make the problem even worse, I dont fancy drilling the frame myself and really dont see that this would benefit you in any way as far as adding more room, honestly I would say your bike is probably better suited for a friction drive set up just like my Schwinn is, but I do think that if you could remove some material from the rear mounting block and also go to maybe a 36T rear sprocket you could possibly get the clearance you need and get it done that way, it's hard for myself or any of us to give absolutes for ya since we are not able to actually put our hands on the bike and give it a closer look, but with a couple of these mods. it does seem to be posible to get your motor mounted in a position that will work.
Also, if the carb. still has a clearance problem after the engine is in a workable position, you may consider using one of Jim's little Custom Billet Intakes, and a low profile breather, Pirate Cycles has them both and they are great products you can get them both for about $32-$34 shipped to your door and not only do they give you more room but your engine will run better too, they are great products.
If you need some advice on how to remove 1/4" material from the rear mount and get the cut straight just let us know and I will post some pics of what you will need to do, I dont have them but I can take a part and create some for you if need be, all you will need is to have a bench vise available, a Hacksaw, a couple small pieces of thin flat steel or alum. to use as guides and a tape measure or set of calipers, even an old wooden ruler could be use if need be.
If you have these tools available and need this how to advice just let me know and this afternoon when I have the time I will put something together for you on this that can help you cut those mounts down if you choose to go that way with it, GREAT Idea BiMoPed.........!