Yes, thank you all for the reality check.
I need to test fit the motor and chain in before I commit to a swing arm position. I measured both separately and the numbers seemed to work out with a 1/2 inch to spare. I'd rather the stance of the bike come from the swingarm position than cutting and raising the subframe, and I'd rather not run a tensioner over the swingarm. So, if all else fails, I'll lower the bike back into a more stock position if I can.
Autotek, I think maybe the tubing I was using was too thin of a gague. It kinked really bad, got jammed in the die, bent to where it clipped off the oil plug from the back of the hydraulic cylinder and leaked oil all over the place. Needless to say my patience with the apparatus was nil after that experience. I'm sure in better hands it give better results. In the end I'm happier knowing I have those structural parts bent by a professional.
Here's a picture of the shock mount tabs bored out to 12mm. I used a 15/32 cobalt bit, which equates to about 11.9mm...so with a little wiggling my shock bolt now have a nice snug fit. You can see the old size on the far right.