Good news! I have received another Duomatic hub from Germany and managed to fix the bike gears. I have taken the hub apart and noticed that the shifting spring i run is actually quite different shape then original. It is reproduction i bought from another guy from Germany few month ago, and i think it should have been good. It is either wrong calculation, or it was destroyed by some other element inside my hub while operating. Maybe the worn plastic ring did it? Anyway, i will take more pictures for you guys to see, but the hub in the Schwinn wheel is now fully functional.
I might not use the plastic caps in the end. Figured something else yesterday evening.
Drilled out and threaded the lamp body to m6, then put them on some weired m6 to m8 adapters i bought at local hardware store. Poured some hot glue on the tips of the rack and "screwed" the adapters on. Now they seem to sit there well and solid, hope the road vibrations won't change that.
I really love the looks of them. The visor angle plays nicely with the rack stands angle.
By the way, did you notice the difference? I bent the rack rear rails higher, to look a bit closer to what original rack was like. Still they are shorter and more rounded then original, but in my opinion it looks better now. I also have bent the front so it looks way better and more harmonious now, and also sits a bit higher and clears the fender well. However i did not take a picture of it yet, i'd wait for some light so you can see it more clearly.
I was also experimenting with the front lamp, and i just can't find a good place for it. It overweights the bike looks so much. I believe it would look awesome there if there will be no rack but truss rods, however with the rack i think i'd rather use NOS Delta Wren light i have scored few month ago.
It has the handlebar mounting clamp in set, and looks really good there. I am planning to go buy some inch-standard bolts tomorrow, and then i put it on the bike to see how it looks together.
The other polish lamp and truss-rods instead of a rack are still an option, but honestly the more time i spend bending and fitting the rack, the more i am starting to like it. It is a big difference with how it was sitting in the beginning, and now this whole idea doesn't seem so bad. It almost sits elegantly like it was made for it now, not "amateur" looking like before. Really, those small little lines adjustments make a big difference.