Shift Kit Chainring Rubbing Frame

I'm in the middle of installing a shift kit from SBP and have encountered a problem that i can't find an answer to. It's pretty simple, the outside, larger chainring on the freewheel is so close to the chainstay that the chain grinds on it and wont turn. I don't know if i should file a groove in the stay or if there's a way to move the whole freewheel assembly away from the bike. I didn't replace the bottom bracket on my bike already with the one that came with the kit because i don't have the tool. Is that one wider? Thanks for any help.
 
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