I took your advice and pulled off the derailleur. There was a portion at the end of it, where it is pressed to make the tang (lip) so it sets in the drop out, that is about 5/32 of an inch. I grinded it out and still retained a tad bit of the tang and that set the axle back 1/8 inch more. I also added a plastic washer behind the brake pad so that the caliper arms would not have to compress as much. That helped a lot as the more it had to compress the closer the caliper was to rubbing the edge of the tire.Looks like your derailleur hanger might be pushing your wheel too far forward?
Yeah after sitting back and looking at all that is let there isn't a whole lot left to make it ride able. There are things I would still like to do to it but they may have to be done later. I have a Stewart & Warner speedometer for it but my cable is too short. It is a 23" and I need one at least 28". It has the 9/16" ends on it. I also have a 5' parachute for it but I still need to make the bag and bracket for it. The last thing is the wheelie bars. I think I have all of the parts for that it's just going to take some time to make. Time is a valuable commodity at this point.Getting close!