Sometimes the fix is just too darn easy. Before I ruin a good caliper I thought I would see if you guys can see a reason I shouldn't do this.
So the fix is as simple as a V-brake noodle. I would lose the cable adjustment, but there is still one on the brake lever. If I drill the hole that the adjuster went through at an angle and grind the edge of the caliper arm, I should have the clearance I need. If needed, I could epoxy the noodle in place.
The other nice thing about the noodle, it will allow me to direct inner cable away from the rim and toward the axle housing without having to deal with getting a tight bend on the outer brake cable housing.
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Looking at that older pic of your calipers, that was my first thought.....will it fit without the barrel adjuster. Then you could just splice in an inline adjuster instead